Argentina Picks Advisors
Argentina named three international investment banks to advise on
restructuring $99.4 billion in sovereign bonds, in default since
December 2001. Economy Minister
UBS Warburg, Merrill Lynch
Barclays. The government hired a group of local banks comprising state-owned
Banco de la Nación Argentina,
BBVA. These banks could share at least $88 million in fees if the restructuring is successful.
Leading international investment banks such
were disqualified from bidding because of their role in previous bond sales for Argentina. Others, such as
Citigroup, refused to bid for the mandate. The government had earlier retained
as advisor. International banks backed out either for reputational
reasons or out of fear of not being paid. Bankers worried that
Argentina would insist on structuring a proposal to creditors that
would fail for lack of bondholder support.
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