Without agreement on the debt swap, $68.8 bn could become more than $80 bn

The main risk is not the default, but that failure to accept the proposal will generate a new wave of lawsuits in the courts of the Second Southern District of New York. A new trial for the defaulted bonds would have a short duration, and the country would be forced, by the American laws, to pay the totality of the debt that today must negotiate more interests and punishments and without removals. This $68.8 billion would be transformed by legal magic into more than $80 billion of debt. Everything will depend on the willingness of the creditors to wait or not for Argentina amid an international financial catastrophe of epic dimensions.

Source: Ámbito

Categories: Macroeconomy/Finance