Share on StockTwits

Argentina’s plan to restructure its external debt to skirt a U.S. ruling that prevented it paying its creditors boosts the risk of investors demanding the accelerated payment of their bond holdings. Its second default in little over a decade opened Latin America’s No. 3 economy to the possibility of creditors declaring the principal value of their bonds and interest due immediately – a process known as acceleration. An acceleration could leave Argentina facing claims of up to $30 billion, more than the government holds in foreign reserves.

“Argentina’s Default Strategy Raises Debt Acceleration Risk” is categorized as “business”. This video was licensed from Grab Networks. For additional video content, click the “video” tab at the top of this page.