Argentina costs encourage settlement, says Levy-Yeyati

Argentina costs encourage settlement, says Levy-Yeyati

Bonds

The cost to holdout creditors and US courts of Argentina missing its July 30 deadline to service restructured bonds is likely to drive a settlement, Eduardo Levy Yeyati, a former central bank chief economist, says. “The costs of default look more evenly distributed among the parties than would appear at first sight: every actor has a strong incentive to settle, which is why I think that, barring an accident, a settlement is more likely than a default,” he argues in an opinion article for LatinFi

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