Argentina 2001

About Argentina 2001

Argentina defaulted on 93 billion in sovereign debt in December 2001, then the largest sovereign default in history. President Fernando de la Rua resigned and fled the presidential palace in a helicopter. Argentina had pegged the peso to the US dollar, which made exports uncompetitive. The government borrowed heavily to finance spending. A recession starting in 1999 made the debt unsustainable. Bank deposits were frozen, triggering riots in which 27 people died. The peso was devalued by 70 percent. Argentina negotiated with creditors for years, eventually offering bonds worth approximately 30 cents on the dollar in 2005. Holdout creditors, nicknamed vultures, sued for full payment. The dispute continued until 2016 when Argentina settled. Argentina defaulted again in 2014 and 2020.