Argentine Debt Plumbs New Depths as Political Tensions Mount

  • Dollar bonds sink lower than worst moment of 2020 debt talks
  • Market skeptical of Batakis’ comments as bonds dip to 20 cents

The Ministry of the Economy in Buenos Aires, Argentina, on Friday, Feb. 25, 2022. 

Photographer: Sarah Pabst/Bloomberg
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Even by the standards of Argentina’s debt crisis and default of 2020, the nation’s sovereign bonds are now trading at unprecedented lows.

Benchmark notes due 2030 have slumped almost 4 cents on the dollar to 20 cents since Silvina Batakis was named as economy minister on July 3, threatening a lurch to the left in a government battling economic turmoil. Prior to the restructuring of debt two years ago, the bonds, which had higher coupons than today’s ones, never fell below 23 cents.