Time is running out for Argentina to find a workable solution in a US court case which threatens to trigger a messy sovereign default. While the country’s fate is still technically in its own hands, the chances of an agreement being struck with ‘holdout’ bondholders are looking increasingly slim. The irony is that even if Argentina were to sweeten its offer to avert a default, this could open the door for a spate of copycat claims, potentially adding to growing strains in the country’s balance of payments.
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