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An Analysis of Argentina’s 2001 Default Resolution

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  • Martin Guzman

    (Columbia Business School
    University of Buenos Aires)

Abstract

Argentina’s 2001 default was followed by a complex debt restructuring that included a long legal dispute with so-called vulture funds and other holdout creditors. The resolution of the sovereign default took almost 15 years—and the case continues to have ramifications that are resulting in new disputes. This paper examines the whole restructuring process. It describes the strategies followed by the debtor and the bondholders, their implications, and the characteristics of the legal disputes. It also analyzes the implications of the default resolution for the functioning of sovereign lending markets.

Suggested Citation

  • Martin Guzman, 2020. "An Analysis of Argentina’s 2001 Default Resolution," Comparative Economic Studies, Palgrave Macmillan;Association for Comparative Economic Studies, vol. 62(4), pages 701-738, December.
    • Handle: RePEc:pal:compes:v:62:y:2020:i:4:d:10.1057_s41294-020-00124-1
    DOI: 10.1057/s41294-020-00124-1
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    Cited by:

    1. Sebastian M. Saiegh & Glen Biglaiser, 2024. "The value of legal recourse in sovereign bond markets: Evidence from Argentina," Journal of Empirical Legal Studies, John Wiley & Sons, vol. 21(3), pages 669-709, September.
    2. Sayantan Ghosal & Marcus Miller & Kannika Thampanishvong, 2019. "Waiting for a haircut? A bargaining perspective on sovereign debt restructuring," Oxford Economic Papers, Oxford University Press, vol. 71(2), pages 405-420.
    3. Daniel A. Dias & Christine Richmond & Grant Westfahl, 2024. "Duration of Capital Market Exclusion: An Empirical Investigation," Finance and Economics Discussion Series 2024-093, Board of Governors of the Federal Reserve System (U.S.).
    4. Martin Guzman & Domenico Lombardi, 2018. "Assessing the Appropriate Size of Relief in Sovereign Debt Restructuring," Documentos de trabajo del Instituto Interdisciplinario de Economía Política IIEP (UBA-CONICET) 2018-26, Universidad de Buenos Aires, Facultad de Ciencias Económicas, Instituto Interdisciplinario de Economía Política IIEP (UBA-CONICET).

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