Argentina’s Debt Profile Highlights the Mountain It Must Climb

The slump in the Argentine peso last week made the country’s pile of debt much harder to repay, signaling a renegotiation may again be in the cards for the South American nation, Bloomberg News reported. As of March 31, Argentina had $33.7 billion in foreign-currency debt payments due by year-end, the majority in short-term Treasury bills, or Letes, according to the latest debt report by the Finance Ministry. Most of that still needs to be repaid. As investors pull out of the country before October’s election and the likely return of a populist government to office, the warning signals are flashing. Last week, the government rolled over 43% of maturing Letes, less than before the opposition won a landslide victory in a primary vote on Aug. 11, when roll rates were about 90%, according to Citigroup Inc. Read more

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