Argentina Provinces Gear Up for Debt Fights After First Default
- Half a dozen provinces taking own steps amid government talks
- Provinces have high probability of default, Moody’s says
A sign asks people to "Maintain Distance" in the Montserrat neighborhood of Buenos Aires on May 14.
Photographer: Sarah Pabst/BloombergThis article is for subscribers only.
A growing number of Argentine provinces are hiring advisers and weighing options for their foreign debt loads as the national government advances its own talks to restructure $65 billion.
Half a dozen regional governments are taking their own steps as Argentina negotiates with holders of its overseas debt ahead of a May 22 deadline. For provinces, which hold $15 billion in debt and rely on disbursements from the central government, the fate of the national talks are key. Any failure to reach an accord could complicate their standing with creditors.