Recession-hit Argentina has managed to restructure 99% of US$ 66 billion in debt issued under foreign legislation, Economy Minister Martin Guzman announced on Monday.
Argentina aims to reach a deal with the International Monetary Fund over a new financing program before the end of March, a time frame that Fund veterans say is realistic if both sides show commitment. The news was reported by the economic media from Buenos Aires.
Argentina has reached an agreement with creditors to restructure around US$ 65 billion in sovereign debt, breaking a deadlock in talks that will help the country climb out of default and banish fears of a damaging and protracted legal standoff.
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
Argentina’s US$65 billion debt restructuring talks teetered on the edge after two key creditor groups knocked back the country’s latest “final” offer, while the government signaled that there was no room left to improve the terms.
Argentina is still working with its creditors to reach a debt restructuring deal after talks stalled, though there is still a distance to cover in economic and legal terms, Economy Minister Martin Guzman said on Thursday.
Argentina has extended confidentiality agreements with creditors by one day to allow further negotiations as the two sides seek a last-ditch agreement to restructure around US$ 65 billion in debt.
Argentine bonds rose on Friday as the government said that negotiations with creditors to restructure around US$ 65 billion in sovereign debt would continue into next week and that a deadline for reaching a deal would be pushed back to at least June 19.