Argentina narrowly escaped bankruptcy .. What have you done?

I went out Argentina Officially from the list of the state unable to pay its debts after the S&P Global Corporation raised the credit rating of Argentina, following the latter’s success in reaching an agreement with creditors to reschedule debts worth $ 65 billion.

And Bloomberg News reported that S&P Global raised Argentina’s rating to CCC positive, with a stable foreign outlook, following the Argentine issuance of new bonds on September 4 to replace the old bonds that have stopped paying them since last May.

The international rating agency raised its rating of long-term Argentine sovereign debt, whether in foreign or local currencies.

“This is an important step forward that provides an opportunity for the government to develop a broader plan to deal with various repercussions in the post-pandemic of the new Corona virus, negotiate a new program with the International Monetary Fund and work to end its differences with the Paris Club” of creditor countries, S&P Global said in a statement.

The size of the debt

Argentina defaulted on nearly $ 500 million in debt in May, and failure to reach an agreement to restructure state debt could threaten bankruptcy.

And informs Religion of Argentina At present, $ 324 billion, or 90% of its GDP, is $ 65 billion for foreign investors.

Most of this debt has formed since 2016, when international investors were optimistic about President Mauricio Macri’s capitalist government, which raised the stakes on reviving growth after years of government intervention in the economy, under the leadership of former president Cristina Fernandez de Kirchner.

However, things went wrong in the Macri era, with the currency plummeting and inflation rising.

In 2019, left-wing Alberto Fernandez (Kirchner ally) won the presidency of Argentina to take a different approach to debt, by stopping interest payments and renegotiating.

The Guardian says, in a previous report, that most of Argentina’s foreign currency debts at the end of last year amounted to $ 414 billion, or 93%.

The largest loan

Argentina obtained the largest loan in the history of the International Monetary Fund in 2018, amounting to 57.1 billion dollars, with a period of three years.

A group of leading economists, including Thomas Piketty and Nobel Prize winner Joseph Stiglitz, urged bondholders to take a constructive approach to restructuring Argentina’s debt.

They said debt relief for the country would be “the only way to fight the epidemic and put the economy on a sustainable path.”

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