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Buenos Aires – DBA
Posted on: Tuesday 28th July 2020 – 10:50 pm | Last update: Tuesday, July 28, 2020 – 10:50 PM
International creditors intensified their pressure on Argentina to accept their proposal to schedule their debts and said they supported investor retention of most of Argentina’s external debt.
Creditors reject Argentina’s offer as the final offer to reschedule $ 65 billion in debt and defend their proposal in a letter to Argentine Economy Minister Martin Guzman.
According to the message released today, Tuesday, three groups of Argentina’s main creditors sent them on July 20.
Creditors’ proposals are backed by groups of whom own about 60 percent of Argentina’s foreign currency bonds and 51 percent of their total international bonds.
The Argentine government announced earlier this week the rejection of the international creditors’ proposal, and the Ministry of Economy in Buenos Aires said Saturday that the new requests cannot be met.
“It will not only be irresponsible, it will also be unfair,” the ministry said in a statement.
If no agreement is reached, bankruptcy will threaten the country again, and it will be the ninth time that the country has defaulted in Argentine history.
Lenders recently called for raising interest rates on government bonds and making changes to some contractual terms. However, the Argentine government is sticking to its latest offer and is not ready to make any further concessions.
Argentina faces a serious financial and economic crisis, and the inflation rate has increased by more than 50% recently.
Experts expect this year that the economy will decline by about ten percent.
At the end of May, Argentina failed to pay $ 503 million in interest, resulting in defaults.
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