The Argentine government led by President Alberto Fernández faces a dilemma. It knows it must strike a debt restructuring deal with foreign bondholders to start plotting the country’s economic recovery. It also knows that the sooner it does this, the sooner the much-needed recovery can start to materialise. But the leftist government is determined to come out on top of the negotiations and not to be be seen to be offering a ‘sweet deal’ to creditors, who it believes must accept that investments always carry a risk of financial losses. This stance is preventing the government from moving close to meeting bondholders’ demands and securing a deal. But the clear need to resolve the debt dilemma is driving the government to continue to improve its offer and repeatedly extend the deadline for it to be accepted.End of preview - This article contains approximately 831 words.
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