NEARLY THREE YEARS after Argentina declared a moratorium on its foreign debt, the country finally looks as if it is going to launch a bond exchange in an attempt to cure the default.
Most people involved now expect some kind of offer before the end of the year, although few observers are confident that it will achieve much success.
Part of the reason is that most of Argentina's bondholders seem determined to reject the country's offer out of hand. The Global Committee of Argentina Bondholders (GCAB), which claims to represent more than 500,000 retail investors and 100 institutions holding some $37 billion in Argentine debt, says that there's virtually no chance they will recommend that the offer be accepted.
The stage is being set for what could be a worst-case outcome: Argentina finally trying to resolve its debt situation, and then finding itself rebuffed by its unimpressed creditors.
Argentina,...
