Economy

Infographic: Argentina’s uphill bond maturity schedule

3rd October 2019

By The Essential Staff

Infographic: Argentina’s uphill bond maturity schedule

President Mauricio Macri was already forced to partially default on some of its local, short-term bonds after the latest rout on the country’s assets.

The decision was informed by fears that using the last few dollars that the country holds in its reserves to serve bondholders would lead to a bigger run against the peso, resulting in record poverty numbers before the end of his term.

Now, his likely successor Alberto Fernández is facing a similar (but more long term) dilemma, with massive bond maturities scheduled all throughout the next presidential period.

</p> <img class="wp-image-4214 aligncenter" src="https://gettheessential.com/wp-content/uploads/2019/10/iif2-300x220.jpg" alt="Argentina's bond maturities between the fourth quarter of 2019 and 2024, according to the International Institute of Finance" width="650" height="477" srcset="https://gettheessential.com/wp-content/uploads/2019/10/iif2-300x220.jpg 300w, https://gettheessential.com/wp-content/uploads/2019/10/iif2-768x563.jpg 768w, https://gettheessential.com/wp-content/uploads/2019/10/iif2-1024x751.jpg 1024w, https://gettheessential.com/wp-content/uploads/2019/10/iif2-600x440.jpg 600w" sizes="(max-width: 650px) 100vw, 650px" /> <p>According to figures published by the International Institute of Finance (IIF), an influential think tank backed by some of the world’s biggest banks, the problems would start shortly after the election, with roughly 10 billion up for payment or renewal in the last quarter of 2019 and a similar amount in the first quarter next year.</p> <p>The scariest deadlines come in 2020’s second quarter, with a total 19 billion in financial needs, roughly the same amount as in the four quarters of 2022 or 2023 put together. To make things worse, these figures do not include other massive obligations with local banks and multilateral credit institutions.</p> <p>With the country completely out of global financial markets since early 2018 and having only avoided a full default so far due to the biggest bailout in the history of the International Monetary Fund (IMF), it is not hard to see why local policymakers and foreign investors both see a restructuring as inevitable, at the very least kicking some maturities down the road in order to give Argentina’s economy some breathing room to recover.</p> <p>That will likely not be enough, however. The growing feeling is that improvements in Argentina’s long-term macroeconomic sustainability and cuts in principal and/or interest payments will also be needed for the solution to amount to more than short-term patchwork.</p> <p>

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The Essential Staff

The Essential is a premium subscription-based news platform that brings you high quality journalism and in-depth coverage in English about the changing face of Argentina’s politics and economy.
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