Groups of Argentine creditors reject the debt rescheduling plan

08:48 PM

Monday 04 May 2020

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Buenos Aires – (dpa)

Three groups of Argentine creditors rejected the latter’s offer to reschedule about $ 68 billion of its debt.

Creditors said the plan would incur disproportionate bondholders.

Creditors’ rejection of the Argentine bid came four days before a final decision was taken on the debt swap plan, which threatens Argentina with bankruptcy.

The creditors said in a joint statement that “each of the three groups of bond holders, and the institutions they represent with the rest of the other investors, would like to confirm that they cannot support Argentina’s recent debt swap offer.”

Creditors added that they considered “the conditions that Argentina wanted incurred by them to be disproportionate and unjustified and unnecessary losses”, but added that they wanted to reach “an acceptable solution to the financial challenges the Republic is currently facing.”

The three groups of creditors, which represent Argentina’s largest creditors, include BlackRock, Fidelity, GreyLock Capital and Ashmore.

Argentina is currently suffering from an acute economic crisis, with the inflation rate increasing to more than 50%, while the International Monetary Fund expects its economy to contract at a rate of 5.7% of GDP during the current year.

The Argentine government says it will not be able to meet its debt installments under the current conditions. It offered creditors a debt rescheduling plan that includes reducing the value of debts and reducing interest on them, in addition to postponing the payment of installments until 2023.

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