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The Government formalized the external debt restructuring agreement

2020-08-04T07:22:36.504Z


Argentina will adjust "some contemplated payment dates for the new bonds, without increasing the total amount of principal or interest payments."


08/04/2020 - 3:50

  • Clarín.com
  • Economy

Through a communiqué issued in conjunction with three major groups of creditors, the government made official this morning the debt restructuring agreement under foreign law . The economy ministry called the arrangement "significant debt relief."

"The Argentine Republic and the representatives of the Ad Hoc Group of Argentine Bondholders, the Argentine Creditors Committee and the Exchange Bondholders Group and other holders (collectively, the 'Creditors that provide Support') reached an agreement on the day of the date that will allow members of the three groups of creditors to support Argentina's debt restructuring proposal and grant the Republic significant debt relief, " states the official text, released around 3 in the morning in Argentina.

The Government clarifies that, as it had circulated throughout Monday, "some of the payment dates contemplated for the new bonds" will be adjusted in the proposal raised in early July .

Furthermore, it states that the arrangement does not imply an increase in "the total amount of principal payments or interest payments that the country agrees to make" and that it improves, at the same time, "the value of the proposal for the community creditor. "

The agreement is for a total of $ 64.8 billion and it is estimated that the proposal will reach a value of $ 54.8, according to the guidelines disclosed in the last hours.

After the modifications, there will be an advance on the payment date of the new bonds. Now, it will be on January 9 and July 9 (in the original document they were considered on March 4 and September 4).

Furthermore, the Ministry of Economy anticipated that the new accrued interest compensation and additional consent compensation bonds will begin to amortize in January 2025 and will mature in July 2029.

Meanwhile, the new 2030 bonds in dollars and euros will begin to amortize in July 2024 and will expire in July 2030; and the first installment will have an amount equivalent to half of each remaining installment.

Finally, the new 2038 bonds in dollars and euros of consideration for the existing discount bonds will begin to amortize in July 2027 and will expire in January 2038.

The settlement closed after a busy weekend, in which the government managed to incorporate all large groups of creditors into the settlement.

The first offer of the Government had been rejected by 85%, while the second had only received 35% of accessions.

Source: clarin

All business articles on 2020-08-04

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