Buenos Aires (AFP)

Argentina's creditors rejected the government's latest offer to restructure the country's $ 66 billion debt and presented a counter-proposal. "Impossible" to change this offer, replied Buenos Aires.

"Argentina's offer is not enough for what creditors groups can accept," said the text released on Monday, a few weeks before the August 4 deadline set by Buenos Aires for holders of 'obligations to accept or not his proposal.

The creditors have not disclosed the content of their counter-proposal.

All three groups (Exchange Bondholders, Ad Hoc and Argentina Creditor Committee) expressed confidence that a "consensus solution" could be found to ensure "future economic viability for the people of Argentina".

These creditors represent a third of the holders of bonds issued under foreign legislation and which are the subject of the current restructuring.

This percentage allows them to exercise a right of veto over the offer of the government of President Alberto Fernandez (center left), according to experts.

The reaction was quick: Mr. Fernandez said Monday "impossible to change" Argentina's latest offer, which already represents "a very, very great effort".

"To come up with a better deal would already jeopardize the future. What I'm looking for is for Argentina to solve a problem so that it doesn't have to continue arguing with creditors," Fernandez told Argentine public television.

Argentina wishes to settle the question of its debt but the ball is now "in the court of the creditors", had estimated last Wednesday the Minister of Economy Martin Guzman in an interview.

"In the offer we have made, we have reached the limit of what Argentina can do to take care of the Argentine economy and at the same time seek an agreement with our creditors," he added.

- "The maximum effort" -

“A proposal was made (in April). We saw that we were far from the aspirations (of the creditors), we revised it and we made the maximum effort, and the current offer is the last. hope they understand it, "Fernandez said on July 14.

"We are trying to get closer to creditors. We have already made the ultimate effort," insisted the president.

The Argentine government presented its new restructuring offer on July 7. The restructuring talks, launched on April 20, have already been extended several times. They were supposed to end on July 24. But the limit has been extended to August 4.

This offer is $ 53.5 in recovery for every $ 100 of the face value of the bonds. The initial offer was for $ 39 and was rejected by the majority of creditors. In addition, the grace period is reduced from three to one year.

In the aftermath of the Argentine government's presentation, two of the three groups of creditors expressed dissatisfaction, but said they saw the new offer as "the basis for a constructive agreement".

"We are ready to discuss certain changes to the offer that allow consensual restructuring," said the two groups, Ad Hoc and Exchange Bondholders, which hold some $ 21 billion of Argentina's debt issued under foreign law.

Argentina, Latin America's third largest economy, missed a $ 500 million debt deadline on April 22, before officially defaulting a month later. Despite this flaw, negotiations continued.

© 2020 AFP