Argentina reaches debt agreement with creditors

The Argentine government in Alberto Fernandez announced on Tuesday that it would reach an agreement with its creditors on the restructuring of $ 66 billion of its government debt. The country’s total debt is $ 324 billion, or 90% of GDP.

Towards a way out of the crisis in Argentina? The government announced on Tuesday, August 4, that it has reached an agreement with its creditors on the restructuring of $ 66 billion in debt.

Argentina has reached an agreement with the three groups of creditors who have so far refused their offer, representing “a significant relief” for the country, the Argentine Ministry of Economy said in a statement, while the deadline for negotiations was set for Tuesday at 21 GMT.

“Argentina will adjust certain payment dates” from the government’s original offer, which means payments in January and not March each year originally planned, the statement said.

An ongoing discussion since April 20

By the end of July, the three groups of creditors – the Exchange Bondholders, the Ad Hoc and the Argentina Creditor Committee – had refused the last proposal from President Alberto Fernandez’s government for this restructuring.

Discussions that have been going on since April 20 concerned bonds from 2005 and 2010, products from a previous restructuring and new securities issued from 2016.

In particular, Buenos Aires proposed paying $ 53.5 in repayments for every $ 100 of the face value of the bonds. Creditors demand $ 56.5.

The new agreement stipulates that lenders can collect more than $ 54 per 100 and improve payment times, an official source told AFP.

Argentina’s total debt is $ 324 billion, or 90% of GDP.

Argentina’s economy has been in recession since 2018 and will be hit even harder this year by the Covid-19 pandemic, with a notable reduction of 9.9% in gross domestic product, according to the latest forecasts from the International Monetary Fund.

With AFP