The Argentine government under the leadership of Cristina Kirchner will have to reach a resolution with the holdout investors from the sovereign’s debt restructuring of 2005 if it is to avoid financing issues, according to analysts.
Up to now the government has relied on local market funding and money raised through bond sales to Venezuela to meet its financing needs. However, questions are beginning to be asked about how long that strategy can work.
“So far [Hugo] Chávez [Venezuela’s president] has been a very good window for Argentina to get financing but eventually this will not be enough,” says Walter Molano, head of research at BCP Securities.
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