Default Jitters Mount in Argentina as Local Yields Top 70%
(Bloomberg) – Two years after Argentina emerged from its latest default, a debt crisis in brewing once again.
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This time, the immediate trouble is in the local bond market, where creditors have become reluctant to roll over maturing government bonds.
With spending still high and the leftist government under pressure from the IMF to stop hitting up the central bank for cheap loans to cover its budget deficit, there’s a growing sense in Buenos Aires that officials are running out of financing options and that a local bond restructuring is becoming all but inevitable.
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At the same time, demand for dollars is surging, sinking the parallel peso to record lows almost daily, in a clear sign that investors are redeeming their bonds and whisking the cash offshore.
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https://finance.yahoo.com/news/default-jitters-mount-argenti…