EconomyTop News

Argentina unveils revised debt revamp offer, knocks back new counter

2 Mins read
imageEconomy9 hours ago (May 29, 2020 12:00AM ET)

(C) Reuters. Argentine Economy Minister Martin Guzman gestures during an interview with Reuters, in Buenos Aires

By Nicolas Misculin and Adam Jourdan

BUENOS AIRES (Reuters) – Argentina unveiled an amended proposal to restructure around $65 billion in debt on Thursday, with slightly earlier maturities and a shorter two-year grace period after earlier knocking back a new counter offer from two key creditor groups.

Economy Minister Martin Guzman said in a statement progress was being made in crunch talks ahead of a June 2 deadline, but there was work left to do to strike a deal to avert a messy legal standoff that could drag on for years.

He added that an offer from the Ad Hoc Bondholder Group and a second group of bondholders was a positive step but “still fell short, insufficient for the needs of the country.”

“The result is that we have come closer but there is still an important way to go,” Guzman said, echoing a statement made earlier to Reuters.

Argentina and its creditors are locked in a new round of talks about restructuring billions of dollars of debt, which the South American country says it is unable to pay without getting substantial relief. The major grains producer last week failed to make around $500 million of bond payments, marking its ninth sovereign default.

Creditors rejected a government offer in April, while subsequent counter-proposals from bondholders were knocked back as not giving the country enough breathing room as it grapples with a biting recession.

Both sides have struck a more conciliatory tone in recent weeks, despite the default.

In a separate statement, the government said it had presented creditors a “revised debt proposal” during talks, which would see coupon payments restart in 2022 on most bonds, earlier than a 2023 target in its original offer.

The revisions would also bring maturities on most of the new bonds one year earlier than initially proposed and improve the coupon payments for some bonds.

The Ad Hoc group, which includes names like BlackRock (NYSE:BLK), AllianceBernstein (NYSE:AB) and Ashmore, said earlier its latest proposal offered Argentina more favorable terms, including more than $36 billion of front-loaded cash flow relief over a nine-year period.

Ad Hoc said the proposal, made jointly with the Exchange Bondholder Group, which holds $4 billion of Argentina’s so-called “exchange bonds”, had the support of the country’s “largest creditor constituencies.” The group did not provide further details of the offer.

Guzman said the government hoped to keep working with the Ad Hoc group, but added it was currently the “furthest away” from meeting the country’s requirements.

“There are other creditors with whom we have traveled a path that brings us closer,” he said.

Argentina unveils revised debt revamp offer, knocks back new counter

Disclaimer: Fusion Media would like to remind you that the data contained in this website is not necessarily real-time nor accurate. All CFDs (stocks, indexes, futures) and Forex prices are not provided by exchanges but rather by market makers, and so prices may not be accurate and may differ from the actual market price, meaning prices are indicative and not appropriate for trading purposes. Therefore Fusion Media doesn`t bear any responsibility for any trading losses you might incur as a result of using this data.

Fusion Media or anyone involved with Fusion Media will not accept any liability for loss or damage as a result of reliance on the information including data, quotes, charts and buy/sell signals contained within this website. Please be fully informed regarding the risks and costs associated with trading the financial markets, it is one of the riskiest investment forms possible.

Related posts
Market OverviewTop News

Education Secretary wants U.S. schools open, offers no safety plan

2 Mins read
World18 minutes ago (Jul 12, 2020 10:40AM ET) (C) Reuters. FILE PHOTO: Education Secretary Devos attends signing ceremony at the White House…
Market OverviewTop News

Foreign doctors' hopes for fast-track pandemic licenses in Canada fading

2 Mins read
World3 minutes ago (Jul 12, 2020 10:55AM ET) (C) Reuters. Medical staff assess for COVID-19 at public Victoria Health Unit, BC By…
Market OverviewTop News

Canada's cautious school reopening plans leave moms in the lurch

3 Mins read
World43 minutes ago (Jul 12, 2020 10:15AM ET) 2/2 (C) Reuters. FILE PHOTO: A school bus arrives carrying one student as schools…
Get the daily email that makes reading the news actually enjoyable. Stay informed and entertained, for free.
Your information is secure and your privacy is protected. By opting in you agree to receive emails from us and our affiliates. Remember that you can opt-out any time, we hate spam too!

Leave a Reply

Your email address will not be published. Required fields are marked *