Argentina recasts $65-billion debt restructuring, avoids ninth default

A strong deal is a major win for Argentina, Latin America's No. 3 economy

Argentina has defused fears of a messy default after it gained backing from creditors, allowing it to exchange 99 per cent of the bonds involved in a $65-billion restructuring, a deal that could set a precedent for future sovereign crises.

After months of winding and tense negotiations, framed by the Covid-19 pandemic, bondholders tendered 93.55 per cent of the eligible bonds in the exchange, which with collective action clauses (CACs) allowed a near-full deal to go ahead.

“In recent days, we have worked on the conditions of an offer that gained massive acceptance by our creditors as a result of the dialogue