The Minister of Economy says that there is still time to agree with creditors


Argentina's Economy Minister Martín Guzmán said Wednesday that "there is still time" to reach an agreement with private creditors to restructure foreign law bonds for $ 66,239 million.

"It is our intention to reach a common agreement with our creditors," Guzmán said when speaking at a videoconference organized by Columbia University (United States).

Almost three weeks ago, Argentina launched a restructuring offer whose creditors' accession term expires this Friday.

Large groups of Argentine bondholders, led by powerful investment funds, have rejected the proposal, which they consider "aggressive".

In his speech, Guzmán revealed that during the negotiation process still underway, the Argentine government only received "a single counter-offer" from the bondholders.

"Some creditors have accepted the offer we made and others are trying to reach an agreement. We still have time, but it is vital to restore the sustainability of the debt," said the minister.

"UNSUSTAINABLE" DEBT

The offer, whose accession period can be extended by Argentina, includes a three-year grace period, reducing the capital by $ 3.6 billion, that is, a deduction of 5.4% on the stock owed, and interest on $ 37.9 billion, equivalent to a 62% interest waiver.

According to Guzmán, the level of Argentina's debt is "not financeable, unaffordable and unsustainable."

The minister insisted on the need to reestablish a "sustainable path" for debt and argued that the Argentine proposal is in line with the technical analysis carried out by the International Monetary Fund, which concluded that the restructuring requires a "significant contribution" from creditors private to restore debt sustainability.

BANKS ASK FOR GOOD FAITH NEGOTIATION

The Association of Banks of Argentina (ABA), which brings together financial institutions with foreign capital that operate in the South American country, highlighted today in a statement the importance of reaching an agreement to restructure the public debt.

"The entities grouped in ABA agree on the relevance of achieving a successful restructuring of the public debt and, for this, they advocate an agreement between the Government and the creditors, through a negotiation in good faith that allows both parties to reach a solution sustainable over time, "the statement said.

ABA President Claudio Cesario said that "amid the great effort that all citizens are making to prevent the pandemic from progressing, an understanding between the State and creditors will facilitate the path to recovery of the economy with access to credit and better investment conditions ".

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