Martin Guzman, a senior fellow with the Centre for International Governance Innovation, sits down for a conversation about the lasting implications of Argentina's debt crisis, and how so-called vulture funds prolonged the country's woes.
The country’s 2001 default was followed by a complex debt restructuring that included a long legal dispute with vulture funds and other holdout creditors.
The full resolution of the sovereign default took almost 15 years, far longer than it needed to, Martin argues.
In the discussion, and in a research paper on the topic, Martin talks about the strategies followed by bondholders, and analyzes the implications of the default resolution for the functioning of sovereign lending markets.
He provides a take on the restructuring process, and touches on the strategies followed by the bondholders.
Martin also analyzes the implications of the Argentina experience for the functioning of sovereign lending markets globally, and talks about the role of United Nations' principles in guiding decisions by national courts, whose decisions can have unintended effects and cause chaos.
Martin Guzman is a senior fellow with the Global Economy Program. At CIGI, Martin contributes to research on sovereign debt restructuring, specifically investigating the sovereign debt crises in Argentina and Greece. Martin is a Research Associate at the Department of Economics and Finance at Columbia University Business School, and associate professor at the University of Buenos Aires.