YPF battle is a bad omen for Argentina bondholders
Creditors of Argentine state-owned oil and gas company YPF are fighting for their rights after being asked to participate in a debt exchange that would cause them material losses. But even if bondholders rebuff what appears to be an opportunistic offer, the attempted deal is another bad omen for investors in Argentina.
When Argentina wrapped up the restructuring of its $65bn of international bonds in August, it appeared to give the government a decent amount of breathing space to get its economy back on track.
The agreement granted Argentina a grace period on principal repayments until mid-2024, and minimal interest payments