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.
