The Argentine government announced that this week it will honor payments of some US$ 850 million, which correspond to two different sovereign bonds, one of them a century maturing bond issued in 2017 during the administration of ex-president Mauricio Macri.
The confirmation of the payment comes as a relief for markets which were doubting whether the new government of president Alberto Fernandez, and his raft of possible debt restructuring options, could have anticipated drastic decisions referring to the country's debt.
The two bonds maturing are the Discount bonds equivalent to US$ 752 million and US$ 98 million of the Centenary Bond,
According to market reports the decision of the Fernandez government to honor its debt is expected to continue in the coming months helping to restore some of the country's credibility in the long run, as well as the strong message from the quick approval of an emergency bill which is expected to contribute with some 6.5/8.0billion US dollars to the Treasury.
The new Argentine administration not only has shown to be prepared to raise taxes, temporarily freeze pensions and as Economy minister Martin Guzman declared to the media the purpose was to order home accounts and improve debt negotiations conditions with the IMF and private holders of bonds.
The strategy is to continue honoring bonds, interest and capital, as long as Argentina can keep on with debt negotiations and avoid a default, underlined economist Guzmán.