Argentina appals investors with 75% 'haircut' demand

25 Sep 2003

Thousands of investors are threatening to take legal action against the Argentine government after the sovereign brought the debt restructuring process to a juddering halt this week with demands for a 75% haircut on its $94.3bn of defaulted debt.

Argentina's proposal to slash the amount it will eventually pay back, made at the World Bank/IMF meeting in Dubai this week, values Argentine debt at around 15¢-20¢ on the dollar. This compares with a 28¢-29¢ trading level on its benchmark 2008s and the range of 30%-40% debt forgiveness ...

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