Bondholders calm as Guatemala pledges to avoid default

Guatemala, Antigua, calm, volcano, LatAm, 575, Central America
By Oliver West
19 Nov 2020

Guatemala’s international bonds prices finally reacted this week to its failure to make a November 3 coupon payment amid a legal battle with a US energy company. But the Central American government’s public credit office says a solution is imminent and bondholders appear confident that default will be avoided.

Bank of New York Mellon did not disburse a $15.75m coupon payment on Guatemala’s $700m of 4.5% 2026 notes to bondholders on November 3, even though the borrower had deposited the funds on time. The bank informed the government that its account was subject to a restraining ...

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