Argentine shares on Wall Street fall up to 5% after the large bondholders reject the Guzmán offer

07/09/2020 - 14:17

• Clarín.com
• Economy
• Economy

While in Argentina stocks and bonds are not listed for the extra-long holiday, on Wall Street the roles of local firms are suffering the impact of the general decline in the markets in Europe and the United States and, in particular, the rejection of the large funds to the latest debt swap offer presented by Minister Martín Guzmán.

Cresud's shares, with a 5.5% drop, lead the losses. Banks' shares also lose ground - between 4 and 5% -, while energy stocks fall a little less, with YPF leading the way.

Argentine bonds in New York are also falling, which is reflected in a rise in country risk. This indicator, which measures the difference between the rate paid by the United States and Argentina, increases 1.5% to 2,345 basis points.

On Tuesday, the government made the new offer official with the presentation to the SEC (the United States Securities Commission). But the bondholders gathered in the groups called Ad Hoc and in Exchange Bond Holders returned to reject it, although they left the door open to continue negotiating.

In a statement released Wednesday they argued that the latest Argentine offer is encouraging to "provide a basis for constructive engagement."

Although Guzmán slipped that he could close the swap without these groups, which are led by Larry Fink's BlackRock fund, these bondholders are key because they accumulate a total of US $ 21,000 million of debt, which would give them 32% distributed among “ K bonds ”(those issued in previous debt restructurings) and“ M bonds ”, placed since 2016 on this part. Anyway, this Thursday, sources close to the parties indicated that it is still possible to agree.