Beginning of the End
Nearly three long years after its default, the Argentine government is about to unveil the details of its "final" offer to bondholders.
Argentina's President Néstor Kirchner and Roberto
Lavagna, his economy minister, are confident that a
majority - albeit a slender one - of bondholders will
accept their harsh offer to restructure $84.5 billion worth of
defaulted bonds. If they are proved right, Argentina will have
imposed the most severe sovereign debt restructuring in recent
history, sticking bondholders with NPV losses of 75% to 92%.
|In Buenos Aires, government
officials continue playing hard ball with creditors.
Momentum behind the government's offer is gradually building
among domestic creditors and foreign investors fatigued and
frustrated by their three-year battle with Argentina. When the
government unveils its "final" offer in a few weeks' time, the
bondholders are likely to find they'll be getting from $38.5
billion to $43.2 billion in new bonds in exchange for their old
The scenario paves for the way for Kirchner and
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