Argentina offers its “latest offer” to creditors

Argentine President Alberto Fernandez announced that his government will make a “new offer” to its creditors to reach an agreement allowing for a restructuring of $ 66 billion in debt and an extension of negotiations until the end of August.
The Argentine “Treasury” reported on Sunday evening that the offer will be formally presented to the American Securities Commission. Argentina requires creditors to write off part of its debt in exchange for the remainder.
“The new offer will be open until the end of August,” Fernandez told Radio Millennium. We are making an enormous effort. ” The negotiations, which started on April 20, have been extended several times, and were scheduled to end on July 24, but the government extended them until August 28 to reach an agreement. Three groups of creditors negotiating with Argentina regretted the rescheduling of $ 66 billion in debts at the end of last June, “in the absence of a serious commitment” by Buenos Aires “to avoid the repercussions of the long default.”
Negotiations cover bonds dating back to 2005 and 2010 that resulted from a previous rescheduling, in addition to new financial bonds issued starting from 2016, and made the first offer in May, but most creditors rejected it, stipulated a three-year payment deadline, and reduced 62 percent of the interest. , And 5.4 per cent of the principal. According to a government source, the official offer rose to “about $ 53” for every hundred dollars, while the previous offer was $ 39 per hundred dollars. Argentina has been in arrears since May 22 and had to pay on that date $ 500 million in interest on 3 bond issues being negotiated. But the negotiation continues, though.
Alberto Fernandez confirmed that the negotiations are “in an advanced stage.” The Argentine government’s proposal must first be published in the Official Gazette and then presented to the New York Stock Exchange and Securities Commission. But the government’s margin of maneuvering has narrowed, with the Argentine economy stagnating since 2018, the poverty rate reaching 35 percent, and recording inflation at 53 percent in 2019, in addition to the repercussions of the “Covid 19” epidemic.
The President condemned the conditions accepted by the government of his predecessor Maurizio Macri, and said: “If we analyze all this rationally, (we will find that we) are not asking creditors to lose, but rather to stop collecting additional profit.” The Argentine government says that any restructuring of the debt must be within the financial capabilities of the state to pay, in light of the deep financial crisis that it suffers even before the outbreak of the emerging Corona virus.

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Argentina

Argentina

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