Argentina Is Running Dangerously Low on Dollars to Pay Back Debt

Argentina must repay $5 billion by the end of 2019. It doesn’t have much to work with. While the country’s foreign reserves total a still somewhat robust $43 billion, that figure shrinks markedly once untouchable assets such as dollar deposits of everyday Argentines and a credit line from China are stripped out, Bloomberg News reported. Analysts surveyed by Bloomberg News estimate that the amount that policy makers can actually freely spend is no more than $12.5 billion. One of the analysts, Siobhan Morden of Amherst Pierpont Securities, puts the figure at as little as $6.5 billion. “If you run out of money, you run out of money,” Morden, who runs the firm’s Latin America fixed-income strategy from New York, said in an interview. “There’s serious risk of a hard default next year.” Read more

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