Argentina extends bond restructuring on request from Italian creditors

Tuesday, June 1st 2010 - 02:52 UTC

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The announcement was done by Economy minister Amado Boudou

Argentina is extending its 18.3 billion US dollars bond restructuring at the request of Italian creditors and the country’s financial regulator, Economy Minister Amado Boudou said on Monday.

“This extension of 15 days was decided at the request of Italian banks and the Consob, for operational reasons,” Boudou said, referring to the Italian regulator. “The results that we’ve had so far are in line with our expectations, we’re going to get the number we want, which is 60%”.

The decision comes after Boudou announced May 19 that creditors holding about 8.5 billion in eligible debt, or 46%, had accepted to take part in the swap, a figure that was below market expectations, according to economists including Alberto Bernal at Bulltick Capital Markets in Miami.

Boudou also said the government would hold off on making a decision about issuing up to 1 billion USD in bonds until the end of the offer.

A decline in Argentina bonds following the financial crisis in Europe has made the offer less attractive to creditors, Bernal said May 19.

Argentina’s restructuring offer includes bonds due in 2033 worth 65.12 cents on the dollar, warrants linked to GDP -- the same securities offered in 2005 -- as well as the 2017 bonds to pay past-due interest. The offer doesn’t include past-due payments on the GDP warrants.

Categories: Economy, Politics, Argentina.

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fredbdc
The WSJ reports that even if they get 60% it won't effect the lawsuits or collections so I don't know why they are bothering right now the markets are a mess and the ARG$/bonds are further depreciating. Argentinians are not known for their timing.
Jun 01st, 2010 - 12:52 pm 0
jerry
It is relative simple. Argentina is broke and thet need money any way they can get it.
Jun 01st, 2010 - 09:43 pm 0
axel arg
JERRY.
Ignorant, my country is not in the broke, with or with out change of debt, with or with out reserves to pay our debt, all the payments for this year are assured, in fact we used along this year 1800 millions dollars of our reserves to pay the debt, and we allready recovered them, now we have more than 49 thousands millions dollars of reserves, if we want a new change of debt, that's mostly for our enterprises, they need credit in the inetrnational market with lower rates, and maybe the government in the future could need money from the international markets too, anyway even private stadistics say that it's not necesary.
Jun 01st, 2010 - 11:04 pm 0

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