Concern over Argentina's creditworthiness grows Doubts are growing over Argentina’s creditworthiness, with a high-yielding US$1bn bond issue to Venezuela underlining concerns over the country’s limited access to foreign financing at a time when the fiscal surplus is starting to erode. In the short term, Argentina has the ability to meet its debt obligations. But with its financial needs set to increase and the government’s credibility and intentions being questioned, the medium-term outlook is increasingly uncertain. Argentina’s government is now into its second week of a local debt buyback programme designed to bolster investor confidence. Earlier this month, the government issued US$1bn in bonds to Venezuela at nearly 15%, some two percentage points higher than in a previous US$1bn bond sale to Venezuela in May. The high yield sent shivers down investors’ spines as it reinforced concerns about Argentina’s poor access to international debt markets in the context of a more complicated fiscal and financial outlook. ...