So far at least, financial markets in Argentina have largely shrugged off the fact that, barring a last minute deal with holdout creditors, the government now seems destined to enter a technical default on some of its debt obligations. As it happens, even if the government does default, this may not have a big effect on local markets – Argentina’s long-running dispute with holdout creditors is well documented, and some form of default may now be priced into the markets. Even so, the road ahead is likely to be bumpy. The good news, however, is that contagion to markets in the rest of the region has been limited – and we expect this to remain the case.
Become a client to read more
This is premium content that requires an active Capital Economics subscription to view.
Already have an account?
You may already have access to this premium content as part of a paid subscription.
Sign in to read the content in full or get details of how you can access it
Register for free
Sign up for a free account to gain:
- Unlock additional content
- Register for Capital Economics events
- Receive email updates and economist-curated newsletters
- Request a free trial of our services