Home » World » Debt negotiation: the Government prepared a new offer for the bondholders that, it assures, represents their maximum effort to reach an agreement

Debt negotiation: the Government prepared a new offer for the bondholders that, it assures, represents their maximum effort to reach an agreement

President Alberto Fernández and the minister Martín Guzmán This weekend the terms of a new offer were agreed to the bondholders who, according to qualified official sources, will no longer be modified because it represents “The maximum effort” to reach an agreement that allows the Government to get out of default.

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For their part, as they commented to Infobae official sources, three executives (one linked to Exchange Bondholders, another from UBS representing Gramercy and Fintech and the partner of a major New York law firm) unofficially approached the government with an unofficial offer to approach creditors.

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In Buenos Aires they claim that Larry Fink, the CEO of BlackRock, got personally involved in reaching an agreement.

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Meanwhile, the Ad Hoc Group – which includes Blackrock and Ashmore – affirms that it maintains its will for constructive dialogue to reach an agreement, but that it received no communication from the Government.

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The objective is for the Government to “break the glass ceiling” from having a 4 in front, to go on to have a five, which is why It would be higher than USD 49.9 from the last formal offer, although no further details are known at this time.

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It should be remembered that the Government started with an offer below $ 40, while creditors started around 70.

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As already mentioned, the consensus figure could be around $ 55, said a source from the private sector involved in the negotiation.

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For his part, the President of the Chamber of Deputies, Sergio Massa, that he has had a permanent dialogue with the investment funds, but always told them that the negotiator, as Fernández appointed him, is Guzmán, he passed a message to the creditors. Massa would have told them “No longer pull the thread that is going to break”, In clear reference to the sectors that, within the Government, ask to cut off the dialogue and forget about any agreement.

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The other message from the president of the lower house would have been that the idea is that “Everyone take their balloon, but the largest balloon belongs to the PresidentThat is, that the negotiators of the three committees are satisfied, knowing that the Government, at the same time, must show a closure that closes it both in financial and political terms.

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In this context, the technical definition that Guzmán and the Argentine representative before the IMF will be key, Sergio Chodos, finish defining in the next few days.

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It is not ruled out that, although the official offer is better than the previous one, the funds will complain once again, considering it insufficient, but that would be better than the situation of indifference since the Economy presented its offer of USD 49.9 and the Ad Hoc committees. and Exchange affirmed that the Government was not looking for a solution, but the opposite.

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They immediately made it clear that, if necessary, they would use all the legal tools at their disposal to claim for their rights. That is, the potential acceleration of debt and the filing of a lawsuit in New York courts.

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At the same time, it was revealed near BlackRock that they claimed to have the same legal protection as the holders of the 2005 bonds, with a stronger indenture than that of 2016, a reinforced Pari Passu clause – as interpreted by Judge Thomas Griesa and other judicial instances in the US- and the possibility of accessing more seizable assets if the country does not comply with the agreement.

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Some of these requirements, almost impossible for a government to meet, may change if the government offers a new proposal with a higher nominal value.

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Meanwhile, the government is not expected to pay another two maturities (of the Century and Discount) this week and the default situation that began on May 22 deepens.

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Today, it is expected to pay $ 100 million of the 100-year bond issued in 2017 and on Wednesday $ 570 million of the 2005 Exchange Discount. The government said it would not pay them.

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