Argentina launches debt exchange proposal

Argentina’s government will formally launch its much delayed debt exchange offer on Wednesday with road shows kicking off in both New York and London later in the week. Creditors will have to decide on whether to accept the offer - worth no more than about 30 cents in the dollar - by the end of this month. The government expects that the deal will be approved towards the end of March. Bondholder groups have been almost universally hostile to the proposal but it is expected that many institutional investors will opt to cut their losses rather than engage in further time-consuming negotiation or opt for the uncertain prospect of legal action.