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AmericasDecember 4 2006

Argentina poised for international rebirth

The desperate shortage of supply in the bond markets is well illustrated by the Argentine experience.
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The government is still being chased by creditors in possession of $20bn of defaulted debt from the 2002 crisis, yet bankers are convinced that Argentina could return to the international markets with structures that insulate it from these claims.

But why does Argentina need to go to the international markets when foreign investors are piling into local debt? Such is the demand for local debt issues that the government expects to meet all its financing requirements without going overseas. Nearly 60% of Argentine government debt is now in local currency.

Meanwhile, financial analysts of Colombia are talking about the day the country makes investment grade and a reopening of its 2037s last month attracted $3bn of orders for $468.4m of paper. Times have certainly changed.

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