Argentina bond investors couldn’t catch a break in 2018, with yields on the country’s debt soaring even after the government took out a record $56 billion credit line with the International Monetary Fund in an effort to bolster public finances, Bloomberg News reported. The average yield on sovereign notes from the country has almost doubled this year to 11 percent, and now tops the 10.9 percent rate on overseas securities from much smaller Ecuador, which has the dubious distinction of having the second-most defaults in the world since 1800.
The International Monetary Fund’s executive board approved a $56.3 billion credit line for Argentina, clearing the way for the embattled South American economy to receive a larger amount of funding at a faster pace than originally negotiated, Bloomberg News reported. The board’s sign-off Friday ratified a revised agreement announced in September. Under the new deal, Argentina will receive about $35.8 billion throughout the remainder of this year and all of 2019, representing nearly a $19 billion increase from the original arrangement negotiated in June.