Ar­gentina ap­proves re­vised debt of­fer, set for SEC fil­ing

The Pak Banker - - FRONT PAGE - BUENOS AIRES -REUTERS

The Ar­gen­tine govern­ment for­malised its amended bond re­struc­tur­ing of­fer on Satur­day night, con­firm­ing in a pres­i­den­tial de­cree that it would sub­mit the new deal to the U. S. Se­cu­ri­ties and Ex­change Com­mis­sion on Mon­day.

The de­cree out­lined how the govern­ment had ap­proved a se­cond round of amend­ments to its ini­tial of­fer made back in April, an im­por­tant step to clinch a deal.

Ar­gentina and its main cred­i­tor groups reached an agree­ment in prin­ci­ple on Aug. 4 to re­struc­ture about $ 65 bil­lion in dis­tressed sov­er­eign bonds after months of talks, break­ing an im­passe that had threat­ened to de­rail ne­go­ti­a­tions.

In a sep­a­rate state­ment the govern­ment said that it would make the fil­ing to the SEC on Aug. 17, aim­ing to "bring public fi­nances into bal­ance, give cer­tainty to the pri­vate sec­tor and pro­vide the coun­try with a new plat­form for growth".

It added the pro­posal re­flected the fi­nan­cial terms of the Aug. 4 agree­ment and di­a­logue with cred­i­tors, the In­ter­na­tional Mon­e­tary Fund and other in­ter­na­tional bod­ies on le­gal el­e­ments.

"The work car­ried out made it pos­si­ble to reach con­sen­sus on ad­just­ments to (the) model con­trac­tual frame­work adopted by the in­ter­na­tional com­mu­nity aimed at fa­cil­i­tat­ing the cre­ation of the will that forms the ba­sis of any suc­cess­ful re­struc­tur­ing," it said.

The govern­ment did not give a new dead­line for cred­i­tors to ac­cept its of­fer, though it is likely to have to push the cur­rent Aug. 24 cut-off to give bond­hold­ers a 10-day win­dow after the for­mal SEC fil­ing.

With an al­ready weak econ­omy fur­ther pun­ished by the coro­n­avirus, the govern­ment wants to avoid the kind of messy sov­er­eign bond de­fault that punc­tu­ated a cri­sis in 2001 that tossed mil­lions of mid­dle class Ar­gen­tines into poverty.

After the bond re­vamp is done, Ar­gentina will start talks with the In­ter­na­tional Mon­e­tary Fund to­ward a new pro­gram to re­place a de­funct $57 bil­lion standby lend­ing deal ne­go­ti­ated by the pre­vi­ous ad­min­is­tra­tion two years ago.

OT­TAWA -REUTERS

Ms Free­land, 52, is only the se­cond-ever fe­male fi­nance min­is­ter from the Group of Seven coun­tries, fol­low­ing Chris­tine La­garde of France.

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