Creditors group Argentina rejects offer to restructure the country’s debt because it is “below expectations”

BUENOS AIRES, Apr 20 (Reuters) – A group of Argentina’s international creditors rejected on Monday the offer of sovereign debt restructuring under foreign law announced by the South American country because it considers that it is well below its expectations since there was no Enough dialogue with the Argentine government.

The statement from the Argentine Creditors Committee (ACC) is one of the first responses by Argentine bondholders regarding the offer by the southern nation, which will remain standing for about 20 days.

On Friday, the government of Argentine President Alberto Fernández offered its creditors a 62% interest cut, a three-year grace period, and a 5.4% capital drawdown on its foreign debt of nearly 70 billion dollars, which the country currently considers unpayable.

“The ACC has reviewed the proposal made by Argentina, unfortunately it cannot support it,” the committee said in a statement, adding that the “(unilateral) offer (Argentina) has fallen far below the expectations of the bondholders, not having existed. meaningful discussions. “

“Outsourcing adjustments to international bondholders – who essentially represent foreign savings as a result of the effort – will not achieve the objective of reaching a sustainable solution for Argentine debt,” the group added.

On the other hand, one of the ACC advisers told Reuters that the committee was coordinating with other groups of creditors and with bondholders that are not associated with any group. “We believe there is broad alignment in the market with our statement,” he explained.

The restructuring of sovereign debt is a key objective for President Fernández, who in turn is fighting to keep afloat an economy that two years ago was in recession and is now suffering from the effects of the coronavirus. In Argentina there are 2,941 confirmed cases of COVID-19, of which 134 died.

(Report by Cassandra Garrison and Maximilian Heath; Written by Maximilian Heath)