Argentina: Getting out of Default

Argentina is in the process to restructure over 90 billion dollars of public debt, the largest public sector default in history.

The restructuring will face complex legal and logistical issues, and unless the process does gain momentum soon, it is unlikely that it will be completed before the third quarter of next year.

Being in default hurts Argentina as it delays the return to sustainable growth and the normalization of the capital markets. In addition, until it deals successfully with the debt issue the private sector will have limited access to credit, and the banking sector will not recover its solvency.