Buenos Aires – DBA:
Posted on: Monday, 6 July 2020 – 10:37 p Last update: Monday, 6 July 2020 – 10:37 AM
Argentina plans to make a final offer to creditors today, Monday, as part of its ongoing efforts to restructure $ 95 billion in foreign debt.
The Argentine Treasury said, on Sunday evening, that the offer will be formally submitted to the American Securities Commission and will remain in place until August 4.
Argentina requires creditors to write off part of their debt in exchange for the remainder.
According to media reports, the government will offer creditors 53.5 US cents for every dollar of the value of its current debt, to be paid in full within one year, while the previous offer included payment over 3 years.
It is reported that Argentina has extended the deadline for debt structuring talks 5 times since the government of President Alberto Fernandez began negotiating with creditors several months ago.
Argentina has not already paid $ 500 million in debt despite the maturity of the payment in May. Failure to reach an agreement with creditors could lead to the bankruptcy of the Argentine state.
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 is suffering even before the outbreak of the emerging Corona virus.
The inflation rate in Argentina is currently more than 50%, and the International Monetary Fund expects the economy of Argentina to shrink by 5.7% of GDP during the current year, while the poverty rate in the country reaches more than 35% of the total population.