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Argentina’s Economy Ministry in Buenos Aires has run out of options in the country’s battle against U.S. debt holdouts.
Argentina’s Economy Ministry in Buenos Aires has run out of options in the country’s battle against U.S. debt holdouts.
(ENRIQUE MARCARIAN/REUTERS)

The lesson of Argentina’s bond fiasco

Argentina appears willing to negotiate its way out of a bitter, long-running dispute with bond investors, now that it has run out of legal options to avoid paying them off.

That would be the smart move, because the alternative to a negotiated settlement would be a fresh debt crisis – and an almost certain default – for the beleaguered government. Argentina, which already ranks among the world leaders when it comes to sovereign deadbeats, could say goodbye to its efforts to regain access to capital markets.