MELI: Argentina debt default looms

Argentina has about 5.5 more hours to avoid defaulting on its debt for an 8th time in its history. Below is a link to an Economist article from yesterday:…

“ARGENTINA has until midnight (Eastern Standard Time) on July 30th to avoid going into default for the eighth time in its history. The story leading to today’s deadline started way back in 2001, the last time Argentina defaulted on its debts. Most of its creditors exchanged their defaulted debt for new securities in two restructurings that took place in 2005 and 2010. But a few creditors, led by a hedge fund called NML Capital, took a different path. They scooped up the cheap defaulted debt in order to chase payment of full principal plus interest in the New York courts, under whose law the original bonds were written…”

People use MercadoLibre to buy and sell stuff. MELI converts excess cash generated in Argentina pesos to USD denominated securities. I would think that a debt default should have limited impact on MELI.

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