Argentina announces that its negotiations with creditors on restructuring its debt are making progress and extending the deadline for the fourth time to conclude the agreement.
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The new debt structuring deadline is set for July 24
President Alberto Fernandez said on Friday that Argentina’s negotiations with creditors on the $ 66 billion debt restructuring plan were making progress, as the deadline had been extended again for the fourth time to conclude an agreement.
“The negotiations are progressing on and off. In 2005, when we renegotiated the debt, it took a year. Now it’s been two or three months and we are demanding a result. What is needed is to reduce anxiety and continuity,” Fernandez told Nacional Radio.
“We are sure we will reach an agreement, but Covid-19 has held things up completely. Many creditors are waiting for the pandemic to end, to negotiate in better conditions,” added Fernandez.
The Argentine government said in a statement that the new deadline was set next July 24 “to continue discussions and allow investors to contribute to a successful restructuring.”
This news was reflected by an 8% increase on the Buenos Aires Stock Exchange. It came during a week in which it seemed that the renegotiation talks had collapsed after a group of creditors representing 13 international funds revealed last Tuesday that they would not accept Argentina’s latest offer and were considering referring the South American state to the court in New York.
Crisis Argentina responded by proposing an alternative offer of bondholders under foreign law, but there remains a common ground on interest rates and the grace period.
The Corona pandemic added to the suffering of Argentina’s economy, which has already been in recession for two years, and is expected to contract by 6.5 percent this year.
Almost a month has passed since Argentina defaulted for the ninth time after failing to pay $ 500 million in interest on its bond debt, knowing that it is one of the world’s leading food exports.
And Argentina, which is in tough negotiations, got support from the International Monetary Fund in its attempt to reach an agreement with creditors, but Fernandez insists that any new deal must be sustainable.
In its original offer to creditors in April, the government asked bond holders for a three-year grace period to pay off the debt, a 62% reduction in interest amounting to $ 37.9 billion, and 5.4 per cent on capital, or 3, 6 billion dollars.
Creditors refused this, and the government raised its conditions, but insisted that it would not give creditors more than 50 cents to the dollar, while the negotiating committee says it will accept less than 55 cents.
The bonds that Argentina is trying to pay out represent nearly a fifth of the country’s $ 324 billion in debt and account for about 90 percent of its gross domestic product.
About 35% of its 44 million people live in poverty.
It is reported that Argentina Lagged behind For the ninth time, it was unable to pay its debts in its history. But the government of left-wing President Alberto Fernandez is seeking to strike an agreement with Argentine bond owners, without starting the default procedures.
ومددت On May 11, Argentina proposed to restructure its debt. Argentine President Alberto Fernandez confirmed that his country is still open to negotiations with international creditors, noting that it has extended its offer to restructure its public debt.
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