Argentina Government Takes ‘Hardball’ Stance On Buenos Aires Bonds

Bonds issued by the province of Buenos Aires fell sharply on Monday after a minister in the national government said the state would not come to its aid in making a big debt payment due at the end of this month, setting investors on alert for tough negotiations over the country’s sovereign debt, the Financial Times reported. Debt backed by Argentina’s most populous province and set to mature in 2021 fell over 10 per cent to 62 cents on the dollar. Another bond maturing in 2027 saw its price slip about 3 per cent to 44 cents, while government debt prices also wobbled. Analysts said the treatment of the province’s debt could prove to be a test case for the country’s government bonds, whose investors are braced for the possibility of steep losses. Read more