An Analysis of Argentina's 2001 Default Resolution

CIGI Paper No. 110

October 21, 2016

Argentina’s 2001 default was followed by a complex debt restructuring that included a long legal dispute with so-called vulture funds and other holdout creditors. The full resolution of the sovereign default took almost 15 years. This paper examines the whole restructuring process. It describes the strategies followed by the debtor and the bondholders, the domestic economic implications of the restructuring and the characteristics of the legal disputes. It also analyzes the implications of the default resolution for the functioning of sovereign lending markets.

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CIGI Papers Series

CIGI Papers present in-depth analysis and discussion on governance-related subjects. They include policy papers that present CIGI experts' positions or contributions to policy debates, and background papers that contain research findings, insights and data that contribute to the development of policy positions.

About the Author

Martin Guzman is a CIGI senior fellow and is currently serving as Minister of Economy for Argentina. He is an expert on sovereign debt restructuring, with a specific interest in the sovereign debt crises in Argentina and Greece.