Argentine bonds fall in reaction to Guzmán’s address to Congress
Bonds take a hit in wake of economy minister's comments that a "deep debt restructuring" is on the cards.
Argentine bonds fell Thursday in first transactions after Economy Minister, Martín Guzmán warned Argentina faced a "deep debt resturcturing" that would likely "frustrate" bondholders.
The nation's dollar bonds maturing in 2048 dropped to 2.1 cents to 41.8 cents, while Argentine century-old bonds, maturing in 2117, fell to their lowest level in more than two weeks, Bloomberg reported.
On Wednesday, Guzmán declared before the Congress that Argentina’s creditors will probably be disappointed with the upcoming renegotiation, without providing details over on how abrupt the losses might be.
"We will not allow foreign investment funds to set the tone for macroeconomic policy," he said.
Those words confirmed some of the bondholder’s worst fears in a decisive stage in Argentina’s debt restructuring process.
On the very same day, an International Monetary Fund (IMF) mission arrived in Buenos Aires to launch formal conversations with Alberto Fernández’s administration.
– TIMES/BLOOMBERG