Poll: Argentina's sovereign debt legacy

Author: Zoe Thomas | Published: 26 Aug 2014

As the country’s debt saga continues, attention has turned to its ramifications for future government bond offerings and restructures

What will be Argentina’s greatest legacy for sovereign debt restructures?
For the second time in thirteen years, the government of Argentina has defaulted of its bonds. Compared to other recent sovereign debt crises, Argentina's has played out against a rather animated backdrop involving a US court case, restructured debt holders, and disgruntled holdout creditors.

In 2012, a US appeal court ruled that if Argentina was to repay restructured lenders, then it must fully repay holdout creditors. This, and the subsequent order preventing the clearing bank from making the restructured payments, sent shockwaves through the international insolvency community.

Argentina's are unique circumstances. But this has not prevented industry bodies, insolvency lawyers and investors from considering how new issuances and sovereign insolvencies should be handled.

As IFLR goes to press, it...