What happened to the Argentinian government debt in 2020?
First, while bondholders accepted an income reduction of almost $40bn over 2020-24, Argentina’s public debt in relation to GDP is set to increase this year to around 110%, up from 98% in 2019. Second, the share of the public debt denominated in foreign currency remains broadly unchanged, at about 70%.
How did Argentina get so deeply in debt?
Argentina has a checkered history as a country that relies on foreign investments to fund government operations. In 2002, its currency collapsed, leading to a deep financial crisis. As a result, Argentina defaulted on its debt in 2002, triggering years of litigation with creditors in New York.
What is Argentina debt default?
Argentina is due to start repaying the $44 billion IMF loan this year, but in March Fernandez said the debt was too high a burden. Some $3.5 billion is due this year, $18 billion in 2022 and $19 billion in 2023. The president wants to push back payments for four years, when the economy should be in better shape.
Why did Argentina decide to simply default on its debt?
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.
How much money does Argentina owe the IMF?
Argentina owes the IMF $400 million in interest in November, and about $1.9 billion in principal in December, according to a schedule of its debt obligations.
Why Argentina keeps finding itself in a debt crisis?
The root of Argentina’s recurrent crisis is a lack of competitiveness—yet every IMF program has been premised on the assumption that tightening monetary policy would tame inflation and reconcile Argentines with their currency, the peso.
How much does Argentina owe to the IMF?
BUENOS AIRES, Sept 22 (Reuters) – Argentina made a near $1.9 billion payment to the International Monetary Fund on Wednesday, two government sources said, as the South American grains producer races to agree a new deal with the lender to revamp the over $40 billion it still owes.
How much will creditors get paid under Argentina’s new debt deal?
Under the agreement, creditors will be paid 54.8 cents on the dollar, according to an Argentine government official who has taken part in the negotiations who spoke on condition of anonymity to discuss private negotiations. Argentina would offer creditors new bonds in exchange for defaulted debt and unpaid interest.
Are Argentina’s bonds still based on GDP-linked yields?
The majority of the Argentine bond market thereafter became based on GDP-linked bonds, and investors, both foreign and domestic, netted record yields amid renewed growth.
Which countries have been the largest investors in Argentina’s debt?
One of the largest single investors in Argentine bonds following these developments was Venezuela, which bought a total of more than $5 billion in restructured Argentine bonds from 2005 to 2007. Between 2001-2006, Venezuela was the largest single buyer of Argentina’s debt.
How much debt does Argentina have with the IMF?
Argentina under the Kirchner administration had already reduced its debt to the IMF from $15.5 billion in 2003 to $10.5 billion at the time of this announcement. The last and largest remaining share of the IMF debt, about $9.5 billion, was paid on January 3, 2006.