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Argentina Expected To Hold Debt Exchange

ARGENTINA
  • Today, Argentina is expected to ask investors to swap a portion of the estimated $37b in local currency bonds that mature in the second quarter. It is looking to swap as many of them as possible into new debt maturing 2024 and 2025. (BBG)
  • Securities that aren’t exchanged will have to be refinanced when the country auctions new bonds, which could be expensive and difficult soon before a presidential election in October of which the outcome is uncertain.
  • It is unclear how voluntary this swap is for many parties. The public sector, including public banks and the state-run pension fund Anses, hold about half the nation’s local bonds due this quarter and will be forced to swap. And private sector banks, which are regulated under state law, must enter a portion of their holdings in the swap.

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