As the dust settles on the latest twist in Argentina’s sovereign debt debacle, attention has turned to 2013 and the possibility of a fresh default. This remains a significant risk. But while a default would not trigger an economic collapse, as happened in 2001, it is likely to further alienate Argentina from foreign lenders. Hardest hit by this may be Argentine provinces and corporations which depend on external financing and would suffer from a surge in borrowing costs.
Subscriber content
Read this in full, free
Start a free trial and use one of your 10 free starter credits to unlock this piece.