Argentina’s Defaulted Sovereign Debt - Dealing with the “Holdouts”

This report provides background, analysis, and implications of Argentina’s proposal to resolve its defaulted sovereign debt. In December 2001, following an extended period of economic and political instability, Argentina suffered a severe financial crisis, leading to the largest default on sovereign debt in history. It was widely recognized that Argentina faced an untenable debt situation that was in need of restructuring. In 2005, after prolonged, contentious, and unsuccessful attempts to find a mutually acceptable solution with its creditors, Argentina abandoned the negotiation process and made a one-time unilateral offer on terms highly unfavorable to the creditors.

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Author:J F Hornbeck
Series:US Congressional Research Service Reports
Publisher:Congressional Research Service (CRS), Washington DC, United States