Argentinian negotiators have managed to sweet-talk a further, but necessary deadline extension to negotiate with its creditors till June 12. The country is looking to restructure about $65 billion in bonds made unsustainable by a long recession and a currency plunge. The Argentinian Lira losing value means that it will be more difficult for the central bank to pay back its euro bonds without assuming a whole lot more debt. Additionally, in times like these central banks try to shore up their currency by buying it from the market and selling another currency (increasing its supply and lowering its value against the Lira). The international monetary fund said on Monday it would set the country on a sustainable debt management path.

Will this make Argentina and the whole Latin America complex a better investment as there is less risk with the IMF involved? Discuss…

Get our Emerging Markets updates for free every morning!

Leave a Reply

Your email address will not be published.

4 + eight =