Buenos Aires Province May Be First Test for Argentina Debt Talks
- Investors concerned about outlook for payments next month
- At least one group of bondholders is starting to organize
This article is for subscribers only.
Bondholders are gearing up for a nasty fight as Argentina’s largest province stares down a debt payment it may not be able to make.
The Province of Buenos Aires will owe investors $571 million in January, and is unlikely to be able to come up with the cash amid a sharp devaluation in the currency and severe economic recession. The region has few dollar-generating industries, and tax revenue has dropped 14% in inflation-adjusted terms this year. Refinancing isn’t a realistic option amid plans by the federal government to restructure its debt.