President of the oil company YPF: the debt rescheduling agreement will help Argentina’s economy

Buenos Aires – DBA

Posted on: Wednesday 5 August 2020 – 11:04 pm Last update: Wednesday 5 August 2020 – 11:04 pm

Guillermo Nielsen, chairman of the state-owned Argentine oil company, YPF, said in broadcast remarks, on Wednesday, that the agreement reached by Argentina to reschedule its sovereign debt, could help the Argentine economy as a whole because it means that companies can now look at Beyond the small financial markets and the issuance of their securities in the American market.

“The prices of gasoline and diesel (diesel) in Argentina are still much lower than in the world markets,” Nielsen said, speaking to Radio 10, adding that the price of the Argentine peso had not changed against the dollar since last December.

There is a dilemma already for the government to strike a balance between providing fuel at reasonable prices to consumers and the prices that allow YBF to continue investing in oil production, Nielson said, adding that if local energy companies are unable to continue investing, Argentina will be forced to Import from abroad, which leads to additional economic problems.

The Argentine Ministry of Economy announced yesterday that the country reached an agreement with its most prominent creditors to reschedule $ 65 billion in debts, which paves the way for the country to avoid defaulting on more debts and entering into bankruptcy.

The agreement was reached after months of negotiations, as part of the state’s efforts to schedule debts it said it was unable to pay.

The agreement was reached after the government improved the terms in its previous proposal, which it said was its last offer, after creditors rejected it.

The government postponed the creditors ’deadline to confirm the agreement from Tuesday to August 24.

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