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. © 2022 Euromoney, a part of the Euromoney Institutional Investor PLC.

Argentina blazes a trail

Five years after the economic crisis, concerns emerge about overheating.

It is exactly five years since Argentina defaulted on $81.8 billion of debt and devalued its currency. At the time, it was difficult to see how the Latin nation could extricate itself from financial crisis.

How things have changed. Not only has Argentina restructured its debt with its private bondholders, it has paid the IMF the almost $10 billion it owed the multi- lateral and is now seeking to tackle the $6.3 billion of defaulted debt it owes the Paris Club of official creditors.

The turnaround in its fortunes is remarkable. Today, Argentina is booming, as is most evident in the financial markets. The sovereign was the best-performing country in the emerging markets asset class in 2006, yielding 48% between January and mid-December, compared with a return of 10.6% for JPMorgan’s Embi+ index. Almost all Argentine securities rallied last year, including its par and discount bonds and especially its GDP warrants. These securities were created following the sovereign’s debt restructuring in June 2005. They returned a startling 150% in the first 11 months of last year.

Although Argentine asset prices performed well throughout the year, they really pushed on in the fourth quarter.

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