posted on Feb, 26 2005 @ 01:32 PM
Argentina has completed negotiations for a debt swap for its 102.6 billion dollars of debt. Argentina has been in default for three years, causing
considerable economid difficulty for the nation. Although the estimated loss on the original value of the bonds is around 70%, it is expected that up
to 80% of bond holders will accept it, especially locals who will benefit from the correction of the nations economic woes. The agreement has already
been accepted by bond holds representing 40% of Argentina's national debt.
The estimated loss to bondholders is up to 70% of the original value of the bonds, yet the majority are expected to accept the government's offer.
Argentina defaulted on its debt three years ago, the biggest sovereign default in modern history.
Argentina's stock market rose 4.6% on Friday to close at a record high of 1,600
Please visit the link provided for the complete story.
I'm no great mind when it comes to economics, but this sounds huge. Argentina is so poor that people will take pennies on the dollar for their
investment because its the best they'll ever get? On the bright side, if it livens up the economy in Argentina it presents a chance for additional
money to be made on top of the return on the bonds, especially for domestic bond holders.
[edit on 26-2-2005 by TrickmastertricK]