Argentina announces that its negotiations with creditors on restructuring its debt are progressing, extending the deadline for the fourth time to conclude the deal.
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The new deadline for debt restructuring has been set for July 24
President Alberto Fernandez said on Friday that Argentina’s negotiations with creditors on the $ 66 billion debt restructuring plan are making progress, as the deadline has been extended again for the fourth time to strike a deal.
“The negotiations are progressing intermittently. In 2005, when we renegotiated the debt, it took a year. Now two or three months have passed and we demand a result. What is needed is to reduce anxiety and continue,” Fernandez told Radio Nacional.
“We are confident that we will reach an agreement, but Covid-19 has complicated matters perfectly,” Fernandez added. “Many creditors are waiting for the end of the pandemic to negotiate in better conditions.”
The Argentine government said in a statement that the new deadline had been set for July 24 “to continue discussions and allow investors to contribute to a successful restructuring.”
This news was reflected by an 8% increase in the Buenos Aires Stock Exchange. And it came during a week in which the renegotiation talks appeared to have collapsed after a group of creditors representing 13 international funds revealed last Tuesday that they would not accept Argentina’s latest offer and were considering referring the South American state to court in New York.
Crisis-hit Argentina responded by proposing an alternative offer to bondholders under foreign law, but common ground has yet to be found on interest rates and the grace period.
The Corona pandemic has increased the suffering of Argentina’s economy, which has already suffered for two years in recession and is expected to contract by 6.5 percent this year.
Almost a month has passed since Argentina defaulted on payment for the ninth time after failing to pay $ 500 million in interest on its bond debt, knowing that it is one of the world’s leading countries in food exports.
Argentina, locked in tough negotiations, has won support from the International Monetary Fund in trying to strike a deal with creditors, but Fernandez insists that any new deal must be sustainable.
In its original offer to creditors in April, the government requested from bondholders a grace period of three years to repay the debts, and a 62% reduction in interest amounting to $ 37.9 billion, 5.4% on capital, or 3, $ 6 billion.
Creditors refused, and the government raised its conditions, but insists that it will not offer creditors more than 50 cents to the dollar, while the negotiating committee says it will accept no less than 55 cents.
The bonds that Argentina is trying to cash account for nearly a fifth of the country’s $ 324 billion debt and about 90 percent of its GDP.
About 35% of its 44 million people live in poverty.
It is reported that Argentina Lagged For the ninth time, it was unable to pay its debts in its history. But the government of left-wing President Alberto Fernandez is seeking to strike a deal with Argentine bondholders, without starting the default.
ومددت Argentina on May 11 proposes to restructure its debt. Argentine President Alberto Fernandez affirmed that his country remains open to negotiations with international creditors, indicating that it has extended its offer to restructure its public debt.
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