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Argentine bonds plunged for a second day yesterday (Thursday) as angry bondholders threatened to block the government's new debt restructuring proposal.
Although the government's new "final offer" is an improvement over the original outlined at last September's International Monetary Fund (IMF) meeting in Dubai, members of the Global Committee of Argentina Bondholders (GCAB) said it was "impossible to accept".
Argentina's benchmark 2008 global bonds were trading around 27.75 cents on the dollar yesterday, down from as high as 31c before economy minister Roberto Lavagna announced the revised offer on Tuesday.
The GCAB already has a natural veto power. It represents 44% of bondholders, and the Argentine government agreed in its $13bn loan accord with the IMF on a 66% minimum participation of bondholders to clinch a restructuring deal.
Even so, Nicola Stock, co-chair of the GCAB, said the group would seek support from other investor groups.
The IMF will also be challenged to react, given that Argentina's new final offer goes against the fund's...