Argentines Yank Savings From Inflation Funds on Default Fears
- Government has tried to assure investors on repayment
- Inflation-linked debt is estimated to be 80% of peso debt
The Central Bank of Argentina in Buenos Aires, Argentina, on Friday, Feb. 25, 2022.
Photographer: Sarah Pabst/BloombergThis article is for subscribers only.
Argentines are yanking cash from funds focused on inflation-linked assets on speculation a growing local debt burden amid surging consumer prices will prove unsustainable for the government. The underlying notes fell for a second day.
Locals pulled out almost 30 billion pesos ($246 million) on Thursday, or 5.3% of total assets in inflation-linked funds, according to local consulting firm 1816 Economia & Estrategia. Withdrawals this month have sapped about 10% of the total assets, the biggest drop on record, according to the company.