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Kicillof extended the term for the debt swap of the Province until August 14

2020-08-03T15:40:23.898Z


The Buenos Aires offer expired on Friday. This afternoon it is defined what will happen with the negotiation of the Nation with its creditors.


08/03/2020 - 10:27

  • Clarín.com
  • Economy
  • Economy

This morning the province of Buenos Aires reported that it will extend until August 14 the term of the exchange offer that expired last Friday. The Buenos Aires proposal refers to the securities issued under foreign legislation, an operation that reaches US $ 7.1 billion.

"In this period we will continue to hold conversations with creditors, to whom we reiterate our commitment to the debts assumed, but always under a repayment scheme that is sustainable over time," official sources indicated,

The Buenos Aires offer expired on Friday, July 31 . Governor Axel Kicillof decided to go for a new extension, now until August 14.

Until now the Buenosairean government has been dealing in tandem with the Nation, extending the exchange of its debt as the Casa Rosada did the same. Now all the market's attention is focused on the decision that Minister Martín Guzmán will take this afternoon to decide whether or not to extend the term of the Argentine offer, which expires tomorrow, Tuesday.

Until now, this improved proposal presented by the country has achieved the adherence of 35% of the bondholders. This is insufficient support, since for the swap to be considered successful it must reach a minimum participation threshold of 60%.

Last night it emerged from the official dispatches that the Nation does not plan to extend the term of the swap and that instead it plans to advance negotiations with the International Monetary Fund. 

The offer from the province of Buenos Aires originally disclosed was seeking a 3-year grace period, a 55% reduction in interest and a 7% principal and relief for US $ 5 billion.

AQ

Source: clarin

All business articles on 2020-08-03

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