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Debt: Axel Kicillof reaches an agreement with its main creditor a year after Nación

2021-07-21T11:59:19.594Z

The Province reported that it will be able to reduce interest by US $ 4,450 million. 07/21/2021 8:48 AM Clarín.com Economy Updated 07/21/2021 8:48 AM After having extended the negotiations 20 times (the last term expired next Friday, the province of Buenos Aires finally managed to reach an agreement with its main creditor to direct the restructuring of a debt that reaches US $ 7,000 million. The government of Axel Kicillof reported this Wednesday that it reached an agreement wi



07/21/2021 8:48 AM

  • Clarín.com

  • Economy

Updated 07/21/2021 8:48 AM

After having extended the negotiations 20 times (the last term expired next Friday, the province of Buenos Aires finally managed to reach an agreement with its main creditor to direct the restructuring of a debt that reaches US $ 7,000 million.

The government of Axel Kicillof reported this Wednesday that it reached an agreement with its main creditor and other bondholders "on terms and conditions that will allow

amending the formal invitation to exchange

existing

bonds

for new bonds and

move towards the completion of the restructuring process

of debt with private parties under foreign legislation.

Pablo López, the Buenos Aires Minister of Finance and Finance, still has to work to reach the closing of a restructuring.

But the

support obtained is key

to launching a definitive exchange proposal.

"The new terms will imply a

reduction in total services

during the 2020-2024 period of approximately US $ 4,450 million (equivalent to 75% of the original commitments), the repayment terms (average life) will be tripled, while the an important

reduction in the total cost of the debt

: the

maximum coupon

that the Province had to face prior to the restructuring will be reduced by

about 40%

, while the average coupon will be reduced to 5.6% ".

"This is a key step to recover a

sustainable debt profile,

according to our ability to pay and the enormous difficulties that we must face, also taking care of the impact of the provincial debt on our macroeconomy," López said in a statement released by the province.

Kicillof's management had already extended the swap 20 times

since April 2020

and had been the subject of strong criticism from bondholders.

In March, the first 40 funds had been presented

in three court cases in New York,

with a holding of US $ 2.1 billion, 29% of the total, and claims for the payment of US $ 366 million in arrears and past due interest.

And in early July, the ad hoc group of holders confirmed that the US Bank National Association joined the bondholders' claim,

raising the demand for past due interest to US $ 1,637 million.

This Friday, in addition to the extension of the term to negotiate, the Province also had to present the arguments of its request to dismiss the lawsuit against it, while on August 13 it was the turn of the bondholders.

Now we will have to see

if the trial goes ahead.

NE


Look also

Kicillof in the crosshairs: a bank files a mega lawsuit in the US for the debt in default

New demands for the default of the Buenos Aires debt: the bondholders demand US $ 1,638 million.

Source: clarin

All business articles on 2021-07-21

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