Argentina and most of its top creditors are moving closer to an agreement to restructure US$ 65 billion of bonds, according to government sources in the Buenos Aires media. Likewise, the prospects of an agreement triggered a bonds rally, and the Merval stock index gained 6,6% the most in a month.
Argentina will seek a new program with the International Monetary Fund whatever the outcome of talks with holders of its US$ 65 billion of defaulted overseas bonds, Economy minister Martin Guzman said.
Argentine vice-president Cristina Fernandez de Kirchner praised Minister of Economy Martin Guzmán statements during a television program in Buenos Aires and described he was “clear as crystal water”, in his replies
Argentine president Alberto Fernandez on Monday dismissed a counter-offer from three groups of creditors who said they had rejected the country's proposal to restructure US$ 66 billion of debt.
Argentina’s government sent a bill to Congress late on Thursday night laying out its plans to restructure public debt in dollars issued under local law, offering creditors new instruments in both foreign currency and pesos.
Argentina’s US$65 billion debt restructuring talks teetered on the edge after two key creditor groups knocked back the country’s latest “final” offer, while the government signaled that there was no room left to improve the terms.
A spokesperson for the International Monetary Fund said on Tuesday that Argentina’s latest debt offer to its creditors is “an important step” in the restructuring process.
Argentina’s government unveiled an amended debt restructuring proposal on Sunday and set a deadline of Aug. 4 for creditors to accept it, adding some key sweeteners as it looks to defuse recent tensions with bondholders and strike a deal.
Argentina's economy is expected to contract by 12% in 2020, a monthly central bank poll of analysts showed on Friday, worse than the previous estimate of a 9.4% decline, as output is ravaged by measures to tame the coronavirus outbreak.
One of Argentina's main creditor groups, the Argentina Creditor Committee, confirmed on Friday that it had tabled a new offer to the country's government as part of ongoing debt renegotiations.