Buenos Aires province bonds added to recent losses on Tuesday after the provincial government asked holders for an extension on a more than US$ 250 million payment due later this month, dragging Argentina’s debt lower as well.
Argentine President Alberto Fernandez on Monday night confirmed that the national government had no plan to bail out Buenos Aires province, which has a payment due later this month on hard-currency provincial debt.
Argentina's debt talks will face their first big test this month with a US$ 277-million payment due on a Buenos Aires provincial bond, seen as a gauge of how the indebted nation's new government will handle its creditors.