Swapping Money for Time

Swapping Money for Time


Argentina's $29.52 billion debt exchange in June was a triumph of financial engineering. It was the largest and most sophisticated operation of its kind ever. Its very size seemed to indicate a rebound in investor confidence in a country that twice in eight months had come close to defaulting on its debts. The deal was 50% larger than the $20 billion originally expected. The exchange has bought Argentina some time to straighten out its public finances and return to growth after almost three years of recession. The country does not have much time - perhaps no longer than six months - to convince the world it can pay its way. Argentina came close to default at the end of 2000 and again i

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