The launch of a new stock market in Argentina for small- and medium-sized enterprises (SMEs) may make up for the lack of bank loans for the sector following the country’s devastating economic crisis and default on $105bn of foreign debt in 2001, even as larger companies are beginning to receive a warmer reception on Wall Street.
Argentina’s continuing indebtedness – it still has a total debt of $124bn, 57% of which is held by banks and individuals – plus the 70% hair cut it forced on the holders of $102bn in defaulted debt last year, has made it harder for Argentine enterprises to access the markets. This is despite Argentina paying off its remaining debt of $9.5bn to the International Monetary Fund on January 3.
