Argentina Defaults on Sovereign Debt Amid Coronavirus Crisis – Debt Restructuring Case Study

Wall Street Journal, May 23 2020 ” Argentina Defaults on Sovereign Debt Amid Coronavirus Crisis – The country is struggling with economic contraction, runaway inflation and a hard-currency squeeze”

Argentina defaulted on sovereign debt for the ninth time in its history, as Latin America’s third-biggest economy grapples with a new cycle of economic contraction, runaway inflation and a hard-currency squeeze exacerbated by the coronavirus pandemic. The cash-strapped country officially entered into default on Friday after failing to make a $500 million interest payment on foreign debt. The…

We examine here the  anatomy of two historical instances of Argentina Debt Exchange Transactions — February and June 2001

–Argentina Reverse Dutch Auction exchange – February 2001 when the Republic successfully exchanged over $8.0 billion of international and domestic securities

–Argentina “Mega Debt Exchange”—June 2001 when the Republic successfully executed a $29.5 billion debt exchange of 46 eligible international and domestic debt securities

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Argentina -Sovereign Debt Exchange Transactions 2001 Anatomy