The material on this site is for financial institutions, professional investors and their professional advisers. It is for information only. Please read our Terms & Conditions, Privacy Policy and Cookies before using this site. Please see our Subscription Terms and Conditions.

All material subject to strictly enforced copyright laws. © 2021 Euromoney, a part of the Euromoney Institutional Investor PLC.

Argentina's bond exchange: Argentina comes in from the cold

Bond exchange reopening should allow sovereign back on to international capital markets – at a price.

More than eight years after it defaulted on some $82 billion of debt, Argentina soon hopes to close one of the most wretched chapters in its history as it reopens its controversial restructuring offer to recalcitrant investors.

The first deal in June 2005, which paid 33.7 cents on the dollar, was taken up by 76% of bondholders. Since then the 24% of investors that stayed out – predominantly hedge funds but also retail accounts – have taken drastic measures to recoup the full value of the bonds, including filing lawsuits in the US courts and making claims on Argentine assets. Initially the Argentine government, led at the time by Néstor Kirchner, refused to contemplate reopening the offer and ordered Congress to pass a law to forbid it happening.

The impasse meant that Argentina was blocked from issuing debt in the international capital markets. For a while that didn’t matter. Argentina raised money by selling $8.5 billion of debt in the local markets. It also borrowed $7.6 billion from its oil-rich neighbour, Venezuela. And after shrinking by more than 10% after the government’s default, the economy revived in the following years, with growth peaking at 8.7% in 2007.

You have reached premium content. Please log in to continue reading.

Read beyond the headlines with Euromoney

For over 50 years, our readers have looked to Euromoney to stay informed about the issues that matter in the international banking and financial markets. Find out more about our different levels of access below.


Unlimited access to and

Expert comment, long reads and in-depth analysis interviews with senior finance professionals

Access the results of our market-leading annual surveys across core financial services

Access the results of our annual awards, including the world-renowned Awards for Excellence

Your print copy of Euromoney magazine delivered monthly

£73.75 per month

Billed Annually


Unlimited access to and, including our top stories, long reads, expert analysis, and the results of our annual surveys and awards

Sign up to any of our newsletters, curated by our editors


Already a user?

We use cookies to provide a personalized site experience.
By continuing to use & browse the site you agree to our Privacy Policy.
I agree