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23 November 2017 09:22 (South Africa)

Argentina set to rehabilitate itself after default

There may be a silver lining for debt-plagued Argentina. The country wants to sell up to $15 billion of debt instruments in the US so it can get back into international capital markets years after a default of nearly $100 billion. In a filing with the US securities and exchange commission, Argentina is encouraging holders of billions in defaulted debt to swap it so it can issue an international bond. It’s likely to be a complex deal, and the country’s debt obligations will still rise to $13 billion next year, so it has to do something fast. There may still be a funding gap of between $2 billion and $7 billion if the government can’t borrow money from its own lenders. But it’s not the first time Argentina has been out of pocket. It has long had default problems, the most memorable of which was in the 1970s during a protracted period of hyperinflation. Read more: Reuters

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