Argentina’s Creditors Face Debt Restructuring Dilemma

A funding crisis risks getting worse for Argentina’s government unless it can strike deals with a mix of local, foreign and multilateral creditors who are owed $101bn of debt, the Financial Times reported. Last week Mauricio Macri, the country’s embattled president, announced that the country had postponed payment on $7bn of short-term local debt for up to six months and was seeking a “voluntary reprofiling” of $50bn of longer-term debt, the majority of which is held by foreign investors. The government said it would also delay repayment of $44bn of loans already disbursed by the IMF. While the country’s shorter-dated bonds plunged in the days after the announcement, investors had long expected Argentina to need more breathing space before it would be able to service its debts. Read more

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