Holmes on chapter eight of Debt Defaults and Lessons from a Decade of Crises, by Sturzenegger and Zettelmeyer: Argentina, 2001. A hundred billion dollars in default, cheered in Congress, output down 16.3 percent in a year. Watson: and the bondholders? A survey said at least 65 percent would refuse the 2005 offer; 76.15 percent accepted, at a loss of 71 to 75 percent. Lestrade: what use is that? Holmes: a default lasts years, three and a half of them.
Chapter eight of Debt Defaults and Lessons from a Decade of Crises tells Argentina's 2001 to 2005 default from the inside: more than $100 billion of bonds, a default cheered in Congress, output down 16.3 percent in a year, a creditor survey saying at least 65 percent would reject the final offer, and then, on February 25, 2005, participation of 76.15 percent at a loss to investors of 71 to 75 percent, three and a half years after the default.
On the book: Debt Defaults and Lessons from a Decade of Crises by Federico Sturzenegger, Jeromin Zettelmeyer
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Debt Defaults and Lessons from a Decade of Crises
MIT Press · Jan 1, 2007
