Dampening the mood further in Argentina is the country’s $12 billion in debt coming due next year. Argentina is attempting financial gimmickry to cool selling pressure in its financial markets. The country “is offering holders of its 7% Boden 2015 various options. They can either cash in at 97 cents on the dollar or swap into 8.75% Bonar 2024s at 99.70 for every 100 of the 2015s exchanged, plus accrued interest,” according to Reuters, a deal the country’s creditors are balking at.
Investors scoffing at that deal is not surprising because most debt swaps involve incentives for the creditor, but in this case, Argentina is demanding a premium.
Earlier this year, Argentina announced its third sovereign debt default in less than 30 years and its second this century. The impact on ARGT has been palpable. The ETF had about $36 million in assets under management in early August, a number that has since been reduced to $19.7 million. [Argentina ETF Sees Big Inflows]
Global X MSCI Argentina ETF
