When did Argentina default on its debt?
2001
When Argentina defaulted on more than $80 billion of debt in 2001, it led to years of litigation and legal cases taken by several disgruntled bondholders. Some roots of the present crisis can be found there. The bondholders eventually won in court, leading to another default in 2014 before a settlement in 2016.
How many times has Argentina defaulted on its debt?
Since independence from Spain in 1816, the country has defaulted on its debt nine times and inflation has often been in the double digits, even as high as 5000%, resulting in several large currency devaluations.
Why did Argentina default on its debt?
The cash-strapped country officially entered into default on Friday after failing to make a $500 million interest payment on foreign debt.
What happened to Argentina’s debt?
Argentina is due to start repaying the $44 billion IMF loan this year, but in March Fernandez said the debt was too high a burden. Some $3.5 billion is due this year, $18 billion in 2022 and $19 billion in 2023. The president wants to push back payments for four years, when the economy should be in better shape.
When was the last time Argentina defaulted on its debt?
Argentina defaulted again on May 22, 2020 by failing to pay $500 million on its due date to its creditors. Negotiations for the restructuring of $66 billion of its debt continue. Around 1998 to 2002, Argentina’s economy went into severe recession.
Why was there an economic crisis in Argentina in 2001?
The 2001 Argentine Economic Crisis. Due to cheap imports, many businesses closed down because they could not compete with low costs of foreign products. With the selling-off of state-run industries to the private market, thousands of Argentines were left without work. Simultaneously, the government went on a spending spree financed by debt.
Who are the bondholders in the Argentine default?
Upon default, Argentina’s bondholders sued to be repaid 100% of their bonds’ face value. Among the bondholders were vulture funds, who had speculatively acquired US$1.3 billion of the bonds’ total value on the secondary market for cents on the dollar after the 2001 default.
Who are the holdouts in the Argentine debt restructuring?
The terms of the debt exchanges were not accepted by all private bondholders; the holders of around 7% of the defaulted bonds – known as “holdouts” – continued to seek full repayment. The IMF initially lobbied for the holdouts until Argentina’s lump-sum repayment to the IMF in January 2006.