A group of Argentina’s biggest bondholders will meet with the country’s treasury minister in New York this Monday to hear how Latin America’s third-largest economy plans to dig itself out of its latest debt crisis.
With President Mauricio Macri’s government expected to lose power possibly as soon as the end of next month, the talks will be treated with caution, but could still yield some useful insights for both sides.
Treasury minister Hernan Lacunza is expected review the current crisis and recently announced proposals to restructure around US$ 100 billion of the government’s domestic debt.
According to reports, the treasury has also just received more than a dozen proposals from banks on how its international currency bonds could be restructured or re-profiled. Bondholders are also likely to compare notes with what they heard on a conference call last week with former deputy economy minister Emmanuel Álvarez Agis, who is now on opposition presidential candidate Alberto Fernandez’s team.
According to one bondholder that participated in the call, which was attended by around 15 major debt and hedge funds, Álvarez Agis said a Fernandez government would prefer to deal directly with bondholders in future negotiations.
Lacunza will also have meetings with IMF officials and the World Bank, according to a spokesman. He will be joined by several other Argentine officials, including the head of the central bank, Guido Sandleris.