Argentina to unveil new debt offer to US SEC, push deadline to late August

by   |  VIEW 1297

Argentina to unveil new debt offer to US SEC, push deadline to late August

In the wake of an acrimonious stand-off regarding roughly $65 billion in international bonds over which the Argentine Government became default for the ninth time on May, the Centre-left Argentine President Alberto Fernandez, who was sworn to take the office later last year after a landslide defeat of the Centre-right Government of President Mauricio Macri, said to a local radio station on Sunday that the fourth-largest LATAM economy was going to unfurl a new debt reform offer which would remain open until end-August, marking up a frantic move from the Argentine Government what appears to be crying out loud to strike a deal with its creditors despite growing tensions.

In point of fact, after the Government of President Fernandez had taken the office, Argentina had been racing to revamp its $65 billion in foreign bonds in order to avoid a messy and protracted legal dispute that could lock the economically embattled nation out of the international credit market.

The debt talks had been progressing well earlier on May and lifting the local bond prices until two key creditors groups had pushed for a stronger legal protection for any kind of deal.

According to the financial terms of the deal which was ditched out on May, Argentine Govt. had offered up to 25 to 30 per cent incentive over the original payoffs, however, had also told that the nation would not be able to pay out returns until 2025, which eventually had led to the investors’ disbelief since the terms of President Fernandez would run out on end-2024.

Argentina to send an amended debt restructuring offer to US SEC (Securities and Exchange Commission)

Besides, as the LATAM grain producing stronghold has been looking to cut a new deal with the Washington-based IMF (International Monetary Fund), in order to help the nation reform a $57 billion credit facility agreed on 2018, sources familiar with the issue were quoted saying on condition of anonymity on Sunday that the Argentine Government was expected to send an amended restructuring deal over the defaulted $65 billion in international debts to the US SEC as early as by this month.