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Thu Mar 14, 2024, 02:50 PM Mar 14

Argentina downgraded to Selective Default by S&P on Milei debt swap

Argentina’s local debt was slapped with a downgrade to selective default by S&P Global Ratings Wednesday after the government pushed investors into exchanging bonds for new notes with later maturities.

The ratings company cut the local credit rating to SD from CCC-, citing what it called a distressed debt swap “tantamount to default” in a statement.

President Javier Milei’s government launched an exchange of around $65 billion of peso-denominated securities due in 2024 for new bonds maturing next year through 2028.

Creditors holding about 77% of the instruments agreed to the deal.

At: https://www.bloomberg.com/news/articles/2024-03-13/argentina-downgraded-to-selective-default-by-s-p-on-debt-swap?embedded-checkout=true

IMF Deputy Managing Director Gita Gopinath and Argentine Economy Minister Luis Caputo shake hands in Buenos Aires last month.

Far-right President Javier Milei made slashing Argentina's $27 billion budget deficit last year to "zero" a central campaign promise to both voters and the IMF - but has largely resorted to gimmicks such as budget sequester decrees (mainly at the expense of provinces) and deferring interest payments.

The latter move cost Argentina a downgrade to "Selective Default" by S&P yesterday.
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