Argentina’s Historic Debt Swap: One step forward, but miles to go Smitha Francis

Argentina’s success in securing a debt restructuring with the biggest debt relief in recent sovereign lending history reflects the legitimate leverage a sovereign can exert over its private creditors in unsustainable debt situations. But, as this paper argues, fundamental issues in debt sustainability and the macroeconomics of development financing remain unresolved for Argentina as for other emerging markets; as does the need to rewrite the rules of sovereign bankruptcy.

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