By Charles Newbery
ARGENTINA: In the balance
As Argentina’s financial position looks ever-more precarious, some investors see an opportunity to pick up sovereign bonds ahead of a rally. Their optimism may prove unjustified
At the October 3 opening of a housing project, Argentine
President Cristina Fernández de Kirchner repeated her
vow to protect the country from hedge funds suing for huge
returns on defaulted bonds.
This time, however, her claims went further, to include the
US justice system; Fernández lambasted the courts,
arguing that they were determined to bring Argentina to
default. "We will not stand around with our arms crossed," she
said. "Argentina will comply with what it has promised."
She spoke as a lawsuit threatened to push Argentina to a
second debt default in 12 years, raising the alarm over the
future of Latin America's third-biggest economy as it stagnates
under high inflation and worsening financial and trade
The latest twists in a restructuring saga that is more than
a decade old continue to keep investors guessing. For some, the
rout has given rise to potential that...
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