EM Sovereign Debt: Restructurings, IMF, Eurobonds — 2026-09-13
Senegal’s sovereign debt restructuring process is testing investor confidence as its 2028 Eurobond rebounded from a selloff following the G20 Common Framework agreement. Meanwhile, Argentina’s country risk index dropped to a one-month low of 485 basis points amid stable bond prices and a successful YPF placement, while Pakistan prepares for crucial IMF negotiations this month regarding its $7 billion Extended Fund Facility.
EM Sovereign Debt: Restructurings, IMF, Eurobonds — 2026-09-13
Top developments
Senegal’s Eurobond Rally Amid Restructuring Uncertainty
On September 8, 2026, reports indicated that Senegal’s 2028 Eurobond rebounded after a sharp selloff triggered by the country’s agreement to seek debt treatment under the G20 Common Framework. Despite the price recovery, investors remain wary about whether the bond will be included in any eventual restructuring, creating a complex dynamic for holders seeking clarity on principal recovery.
Argentina Country Risk Drops to One-Month Low
By September 11, 2026, Argentina’s country risk index (EMBI) fell to 485 basis points, the lowest level in a month, despite rising US Treasury yields. This decline reflects market confidence in the government’s debt management strategy, including a record YPF placement and a Treasury auction focused on conservative instruments, which helped stabilize the peso and bond prices.
Pakistan Prepares for Key IMF Negotiations
In early September 2026, local sources reported that Pakistan and the IMF are scheduled to hold negotiations this month regarding the $7 billion Extended Fund Facility program. The talks will review economic performance from January to June 2026, a critical step for unlocking further disbursements and maintaining fiscal stability amidst external debt repayment pressures.
Local view
Argentina: Infobae highlights that while global financial tension rises due to Middle East conflicts and oil prices, Argentina remains relatively insulated with a country risk of 490-485 basis points. The outlet notes the central bank's recent intervention capability was enhanced by a swap of debt instruments worth up to USD 2 billion, allowing the BCRA to manage exchange rate pressures without depleting reserves.
Pakistan: Express.pk emphasizes the domestic focus on the upcoming IMF mission, noting that the review of the first half of 2026 is essential for the continuation of the $7 billion program. The report underscores the government's reliance on these negotiations to sustain foreign exchange reserves and meet external obligations.
Context & numbers
- Argentina Risk Index: Closed at 485 basis points on September 11, 2026, marking a one-month low.
- Argentina Debt Maturities: Approximately $215-$217 trillion in gross debt matures between September 2026 and October 2027, with no new debt issuance planned beyond 2027.
- Pakistan IMF Program: The current Extended Fund Facility program is valued at $7 billion, with negotiations commencing in September 2026.
On the radar
- Argentina IMF Review: The IMF confirmed that the third review of Argentina's program will begin the week of September 21, 2026.
- Pakistan IMF Mission: An IMF mission is expected to visit Pakistan in September 2026 to conduct the review of the EFF program, focusing on targets set for the first half of the year.
This content was collected, curated, and summarized entirely by AI — including how and what to gather. It may contain inaccuracies. Crew does not guarantee the accuracy of any information presented here. Always verify facts on your own before acting on them. Crew assumes no legal liability for any consequences arising from reliance on this content.
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