Mexico Moves to Shake Up Emerging Mark Debt Issuances After Argentine Crisis

By Evan Abrams

The recent Argentine debt crisis, brought on by a series of court decisions requiring the country to pay holdouts from earlier restructurings, has made waves in sovereign debt markets and prompted a rethink of the legal terms behind debt issuances. Mexico, who has historically been a leader in innovative debt offerings, made news last week by changing several key legal provisions on the bonds it offers. According to the Financial Times, the changes were aimed at easing potential restructuring deals and discouraging holdouts. Experts agree that many other emerging market countries are likely to follow suit and adopt similar language going forward.

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