Perpetual Bonds Unlikely to Be the Answer for Indebted Argentina in YPF Case
- Milei suggests bond sale to comply with $16 billion YPF ruling
- High yields paid by Argentina make bond issue prohibitive
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President Javier Milei’s suggestion that Argentina could issue debt to comply with a $16 billion lawsuit award related to the nationalization of oil company YPF was met with skepticism from investors who have been repeatedly burned by the serial defaulter.
Milei, who faces billions of dollars in upcoming sovereign bond maturities, told LN+ TV late on Tuesday that his government considers offering a perpetual bond — a type of security that pays interest but has no maturity date — to raise the money it needs. The economy ministry hasn’t provided details about the plan.