Argentina's $65 billion debt restructuring agreement with bondholders will likely lead to credit upgrades but is far from ensuring the country's longer-term economic future, rating agencies told Reuters on Thursday.
It took months of tough talks for Argentina to reach agreement on restructuring $65 billion in debt. Though both government and creditors celebrated Tuesday's deal that should help Argentina avert a messy default, it still faces a 10%-plus contraction this year, an over-valued peso, spiking poverty and a deep fiscal hole.
Investors are bracing for more defaults and disruptions in emerging markets after Argentina's deal with creditors highlighted the pandemic's stress on many developing economies. The agreement to grant debt relief to Latin America's third-biggest economy eased some concerns about a prolonged dispute between Argentina and its creditors. But it also underscored the hardship caused by the coronavirus in emerging markets.
Brazil's real firmed on Tuesday, cheered
by a rise in industrial output, while Argentine bonds rose after
the country struck a deal to restructure $65 billion in
sovereign debt.
Investors are bracing for more defaults and disruptions in emerging markets after Argentina's deal with creditors highlighted the pandemic's stress on many developing economies. The agreement to grant debt relief to Latin America's third-biggest economy eased some concerns about a prolonged dispute between Argentina and its creditors. But it also underscored the hardship caused by the coronavirus in emerging markets.
Investors are bracing for more defaults and disruptions in emerging markets after Argentina's deal with creditors highlighted the pandemic's stress on many developing economies. The agreement to grant debt relief to Latin America's third-biggest economy eased some concerns about a prolonged dispute between Argentina and its creditors. But it also underscored the hardship caused by the coronavirus in emerging markets.
The head of the International Monetary Fund congratulated Argentina and its creditors on Tuesday for the "significant step" of reaching a debt agreement. "Look forward to a successful conclusion in the interest of all," said Fund managing director Kristalina Georgieva in a tweet.
Most Latin American currencies were
undercut by weakness in commodity markets on Tuesday, while
Argentine stocks and bonds rallied after the country struck a
deal to restructure $65 billion in ...
Argentina's government confirmed on Tuesday that it reached an agreement with its major foreign private creditors to restructure $65 billion in debt, a step that the economy ministry said will "grant the country significant debt relief" and resolve its third sovereign default in two decades. The agreement, with bondholders led by BlackRock Inc. (BLK) and a number of other major investment firms, enables the government to avoid a prolonged, public clash like the one that marked...
Argentina's government has reached an agreement with three groups of creditors to restructure its debt in a step that will grant significant debt relief to the country, the nation's Ministry of Economy said. The agreement "will allow members of the three groups of creditors to support Argentina's debt restructuring proposal and grant the country significant debt relief," the ministry said. Under the agreement, Argentina will change the payment dates for some new bonds, which...
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