What happened to Argentina economy in 2001?

The government of Argentina ceased all debt payments in December 2001 in the wake of persistent recession and rising social and political unrest. In 2004, the Argentine government made a ‘final’ offer amounting to a 75 percent reduction in the net present value of the debt.

What caused Argentina’s debt crisis?

Decades of high inflation and the erosion of the currency’s value, coupled with the trauma of the 2001-02 corralito financial crisis when Argentines were unable to access their personal bank accounts for almost a year (and when they were, it was only to find that their dollar deposits had been exchanged for devalued …

What was the economic situation in Argentina in 2002?

As a result of the deteriorating economic situation, the proportion of Argentines living below the (national) poverty line rises sharply from an already high 25.9% in 1998 to 57.5% in 2002. Partially thanks to the strong depreciation of the peso, the Argentine economy starts to recover in the course of 2002.

Why did interest rates rise in Argentina in 2001?

November 30th , 2001 – As a result of rising worries among Argentines about a peso devaluation and a deposit freeze, overnight interest rates rise sharply. Moreover, spreads between US Treasury bonds and Argentine government bonds increase to 5,000 basis points.

What was the outcome of the Argentine debt crisis?

Argentina takes a hardline approach against creditors, which results in protracted negotiations. By 2010, 92% of the Argentine defaulted debt has been restructured. However, ongoing litigation by holdout creditors could lead to a new Argentine default in the near future.

Where does Aerolineas Aereas fly out of?

Aerolíneas Argentinas and its sister company Austral Líneas Aéreas operates from two hubs, both located in Buenos Aires: Aeroparque Jorge Newbery and Ministro Pistarini International Airport.