Argentina: further extension of debt restructuring negotiations

Argentine President Alberto Frenandez at a press conference in Buenos Aires, March 19, 2020. JUAN MABROMATA / AFP

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Negotiations between the Argentine government and its private creditors to find a way to restructure the country's colossal debt have been extended for the fourth time by more than a month, authorities announced on Friday (June 19th).

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It is the fourth time in less than two months that the announcement of a possible agreement on the restructuring of the debt of Argentina is postponed. The International Monetary Fund, which has already loaned $ 44 billion to the previous Argentine government, is encouraging these negotiations and asking private investors for a "  notorious contribution  " on a debt deemed "  unsustainable  " . Argentinian creditors and the government therefore allow themselves a little time to achieve this.

They gave themselves until July 24 to find a way to restructure the colossal debt of the Argentine State which represents more than 65 billion dollars, corresponding to bonds going back to the years 2005 and 2010, then to new titles issued to from 2016. Securities held by speculative investment funds and managers of international assets, including the French Edmond de Rothschild and the American BlackRock.

The standoff continues

However, since the start of negotiations in late April, significant progress has been made. This Saturday, June 20, the Argentine government proposed a recovery rate of $ 50 for every $ 100 of bond value. But creditors demand at least 55 dollars. The showdown therefore continues, but many observers believe that the battle has become paltry on the scale of the consequences of these few percentage points on the national economy.

For his part, the center-left president Alberto Fernandez does not intend to give in, however, while showing his willingness to find a compromise in order to "  prevent Argentina from being perceived in the world as a country that does not fulfill its obligations  ”.

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  • Economy
  • Alberto Fernandez
  • Argentina

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