Argentina Bonds Rally After $65 Billion Restructuring Deal
- Agreement comes after more than six months of negotiations
- Economy Minister says deal provides ‘significant debt relief’
Pedestrians wearing protective masks cross 9 de Julio Avenue in Buenos Aires.
Photographer: Sarah Pabst/BloombergArgentina’s bonds jumped to the highest this year after it struck a deal with its top creditors to restructure $65 billion of debt, setting the stage for the South American nation to emerge from its third default since the turn of the century.
The country’s $3 billion of bonds due 2048 climbed more than 3 cents to 47 cents on the dollar, after the government said in a statement Tuesday that the deal with key creditors would provide “significant debt relief” and that interest and capital payment dates for some new exchange bonds were moved forward to reach the agreement. While the statement didn’t provide a net-present value for the pact, creditors have said the deal is worth about 55 cents on the dollar.