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External debt: there is an agreement with the bondholders and Argentina away from default

Almost nine months after taking office, the Government of Alberto Fernández reached a debt agreement under foreign law for some US $ 64.8 billion. The changes made to the last offer would imply a modification in the payment dates, so the value of the proposal would slightly exceed $ 54.

The Government expects to have the details closed in the next few hours and then announce it. This offer would be the fifth from the Argentine government, after the formal start of negotiations with private debt creditors in late April.

After an initial net present value of about $ 39, the upgrade would now climb to just above $ 54. The bondholders, in their latest counterproposal, were asking for $ 56.6 dollars, which they would now be willing to resign in part.

The Argentine shares listed in New York showed a strong positive trend after 2:00 p.m., after the version that the Government and the bondholders settled in the financial market I would have agreed in the offer value and thus successfully close the dollar debt swap operation issued under foreign law.

The papers from Galicia, Macro and Pampa, the most liquid in New York, had started the day with losses of up to 2%, but at 14:30 Argentine time they showed increases in between 8 and 10%.

For their part, dollar bonds, which had shown falls of 2%, were beginning to cut ground, as was country risk, which improved from 2,316 points to 2,269 points.

In economics they were totally secretive.

The versions indicate that the meeting point between the debtor and the creditor had been set at an offer value, measured in net present value, of $ 54.3, that is, one dollar above the last value offered by Argentina.

That improvement came after leaking information that the previous offer, at $ 53.3, had reached only 35% of adhesions.

Legal issues related to the collective action clauses (CAC) and its manipulation by the Government, to achieve compliance with these demands.

Coincidence or not, it is possible that Argentina, if these versions are confirmed, will make the announcement of the agreement almost simultaneously with the government of Ecuador. Its president, Lenin Moreno, announced this morning on his Twitter account that he had reached an agreement with the creditors, and today at 17 hours the details of the operation would be given. I announced it like this

GREAT NEWS for #Ecuador! We achieve the majority necessary to renegotiate the bonds of our external debt. With this, we free up resources for social protection and economic recovery. @RichardM_A will give details in the next few hours. #JuntosEcuador #DegotiationDebt

News in development

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