RUFO expiration will not end Argentina debt lawsuits
Monday, January 5, 2015
Debt markets have failed to pressure Argentina to end the impasse with holdouts, with the government arguing that it could not offer them new terms without offering similar concessions to holders of restructured debt. With elections scheduled for October, the current government is likely to kick the problem to its successor, leaving Argentina facing continued litigation in US and UK courts.
- The Central Bank has effectively managed drawdowns of dollar reserves, helping the government to maintain its hard line against holdouts.
- While this policy persists, the country will remain locked out of international capital markets.
- The severe shortage of dollars will continue, and will continue to dampen growth prospects until resolved.
Stay up to date
Sign up to the Expert Daily Briefings email alert and receive up-to-the-minute analysis of global events as they happen.
*If your university does not have access to Expert Briefings, visit our information page to find out more.