Argentina Puts Off Payments On $10 Billion In Local-law Debt

Argentina unilaterally postponed until next year the payment on $10bn of dollar-denominated debt governed by local law on Monday in what some analysts have called a technical default, the Financial Times reported. The move has raised new concerns about Argentina’s approach to debt restructuring as it negotiates the fate of $83bn in debt issued under foreign law. Private sector investors holding that debt expect an offer to be made by the centre-left government of President Alberto Fernández as soon as this week. While some hope the decision to postpone payments on the local-law debt could provide Argentina with more room to deal with its foreign-law debt, which is vulnerable to unpredictable international lawsuits, others fear it could signal a more broadly aggressive stance that could result in a messy default. Read more

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