BUENOS AIRES, July 6 (NNN-AGENCIES) — Argentina will present a new offer to restructure its debt on Monday and has extended its deadline for creditors to agree until Aug 4, the economy ministry announced.
President Alberto Fernandez had stated earlier that the term was to be extended until the end of August, saying “it is an enormous effort we are making. It’s the maximum effort we can make.”
The deadline for concluding the negotiations with bondholders had been set for July 24, but was pushed back in an effort to reach an agreement to restructure $66 billion in bonds issued under foreign law.
The bonds represent roughly a fifth of the country’s $324 billion debt, which amounts to around 90 percent of its GDP.
A government source said the new proposal would be for “close to $53” for every $100, compared to the original offer of $39 per $100, which was rejected by a majority of the bondholders.
The ministry said it would also send Congress a bill in the coming days to restructure local debt in dollars “on equitable terms” to the bond swap under foreign law.
Fernandez said the conversations with creditors “are going well” and expressed hope “they end well.”
Argentina has yet to reach an understanding with creditors over interest rate reductions or grace periods.
In recession since 2018, the Argentine economy has been further punished by the coronavirus pandemic. The International Monetary Fund estimates it will contract by 9.9 percent this year.
With the backing of the IMF, Fernandez has insisted that any deal with creditors be sustainable so that the country can meet its obligations over the long term. — NNN-AGENCIES
