06/02/2020 - 11:23
After the government made the extension of the negotiations with the bondholders official and the International Monetary Fund (IMF) said that Argentina does not have much more room to offer improvements , the third group of bondholders - who had not yet expressed their opinion on the progress of the talks- went out to clarify that his proposal is in line with the Fund's budgets.
Argentina's Creditors Committee (ACC) said it took note of Monday's IMF statement on Argentina's ability to pay, "and states that its proposal for a comprehensive resolution of Argentina's debt restructuring is in line with the assumptions macroeconomic measures, providing Argentina with financial relief of approximately US $ 35 billion in Eligible Bonds, and US $ 70 billion considering all debt instruments in foreign currency. "
The group added that "the latest ACC proposal is in line with the IMF's assessment of the Republic's ability to pay, while requiring Argentina to make a modest annual fiscal effort of 0.20% of GDP , which can be easily achieved by implementing economic policies that promote growth. "
Finally, the Committee indicated that "reaching an agreement in such terms would be much less costly for the Argentine economy and its people than remaining in the current state of moratorium . Consequently, the ACC continues to believe that the best way to advance is through a resolution agreed between the parties. "
In addition to extending the validity of the negotiations, which were due to expire on Tuesday, the Minister of the Economy, Martín Guzmán, announced that the Government is working on the "final amendments to the offer" that Argentina will present to creditors, but warned that "the margin what is left is scarce ”to restore the sustainability of the external public debt.
Guzmán's statements were in line with those of the IMF that indicated that "there is only a limited margin to increase payments to private creditors and at the same time comply with the debt and debt service thresholds and other conditions established in the note. March technique ”.
On Monday, the group of bondholders that includes the BlackRock fund said that "the IMF statement on Argentina indicates that it is possible to achieve an implementable and sustainable debt restructuring and that Argentina improves its current position."
"The difference between the most recent government proposal and our group's joint proposal with the Exchange Bondholders Group is approximately 1.5% of GDP distributed in the next decade until 2030, and another 1% of GDP from 2031 to 2040," they noted in a statement distributed Monday night. "The task of overcoming this difference and ensuring a path away from non-compliance is in the hands of the government," they warn.
"The government should take action now towards a pragmatic resolution that is welcomed by the international financial community," they concluded, demanding a new offer.