Pandemic Throws Argentina Debt Strategy Into Disarray

Argentina’s plans to restructure more than $100bn of private sector debt have been thrown into disarray by the coronavirus pandemic, which is threatening to plunge the country’s already struggling economy into an even deeper recession, the Financial Times reported. While the crisis that has hit global investments could make creditors less willing to compromise, analysts warn, it could also embolden the government to push for a harsher deal, raising the chances of a disorderly default. But it could present an opportunity to the new leftist government of President Alberto Fernández, providing a reason to escape its self-imposed deadline — widely regarded as unrealistic — of reaching a deal with creditors by the end of March. Argentina is now into its third consecutive year of recession, with inflation running at around 50 per cent, after a currency crisis sent the economy off course in 2018, prompting austerity measures and a $57bn bailout from the IMF. Read more

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