Group of 6 asked creditors for a “final effort”


“External creditors are required to cooperate in a final effort to complete the agreed restructuring,” the entity said in a statement.

Entrepreneurs from industry, commerce, banking and the countryside enrolled in the Group of 6 this Friday they went to ask creditors for a “final effort“to seal the agreement by debt renegotiation with Argentina.

External creditors are required to cooperate in a final effort to complete the agreed restructuring“The entity said in a statement.

They considered that “the proposal raised by the National State and the willingness to pay construct an alternative that improves the objective situation of both parties.”

For the G6, with its latest offer Argentina “tries to respond in good faith to the requirements of its counterpart.”

They said that after several months of negotiation Argentina consolidated a proposal that “reconciles the possibilities of growth with the fulfillment of the contracted obligations, in addition to reducing future expenditures.”

“The dialogue and the offer presented show the willingness of the country to clear the uncertainties of the financial horizon“they noted.

They said that an agreement will be an “advance for two converging priorities: the integral development of Argentina and the guarantee that the country will honor its commitments.”

The Group of 6 is made up of the UIA, the Chamber of Commerce, the Association of Banks, the Rural Society, the Chamber of Construction and the Buenos Aires Stock Exchange.

For Greylock, the Argentine offer is “good enough”

Greylock Capital CEO Hans Humes, a member of Argentina’s creditors committee, said Thursday that the debt restructuring offer presented by the Government is “good enough”, and considered that the groups that presented a counterproposal last Monday “ask too much”.

For his part, the International Monetary Fund (IMF) He reaffirmed his confidence that Argentina and creditors will continue to advance in “constructive negotiations” in order to reach an agreement.

IMF spokesman Gerry Rice reiterated that the negotiations between the parties are a “bilateral” matter and declined to express an opinion on the counterproposal presented by the Ad Hoc Group of Shareholders of Argentine Bonds, the Argentine Creditors Committee and the Exchange Bond Shareholders Group.

In the traditional press conference that she usually provides every other Thursday, Rice expressed the hope that the negotiation will lead to an agreement on a “sustainable path, with inclusive and lasting growth.”

For his part, Humes, the Argentine creditor who has vast experience in restructuring, questioned the hardness of the Blackrock fund and other creditors and he explained that this is the result of a lack of experience in this type of operations.

Greylock’s CEO said that “many funds that did not participate in sovereign renegotiations in the past have entered the process, but demonstrate a certain lack of experience.”

“The experience of the fund’s lawyers comes from much more aggressive environments than those we have in emerging markets and they are showing a certain aggressiveness, which from my point of view, does not make sense,” he stressed in a note with Continental radio.

On the reluctance shown by funds such as BlackRockHumes -in a long-term contact from the US, where he resides-, said that “maybe it’s a matter of ego”.

“If we are trying to negotiate we have to choose what is important on our side,” he added.

Greylock's CEO questioned the inflexibility of the BlackRock fund.

Greylock’s CEO questioned the inflexibility of the BlackRock fund.

Humes highlighted the need to “show flexibility on one side and the other”, and stressed that the proposal of the Minister of Economy, Martín Guzmán, “has moved a lot in recent months”, so “we have reached an acceptable point ”

He added that “the most important thing is to show support for what the government offered,” so “I try to push other creditors to accept.”

“We know that if the Argentine government really makes a rational offer, large funds cannot be left out,” Humes reasoned.

Greylock’s CEO considered that there is room for “flexibility on the Argentine side in legal matters of the transaction and other things that should be important on the creditors’ side,” so there is still “room to negotiate something.”

“Creditors must recognize, if we are talking about the price, the value of the transaction, that the difference between 53.5 and 56 (dollars of present value of the bonds) that really is not worth much,” he said.

For the owner of Greylock, “if Argentina can grow and can fix its problems, that discount may be less and there is room to earn more money.”

The negotiation, in declining moments

In this context, when the Argentine offer is just 12 days away – the deadline sells on August 4 – the government insists that the proposal presented on Monday, July 6 to the SEC (the US Securities and Exchange Commission). ) it is the last one.

This position was made explicit last Tuesday by the President Alberto Fernández before businessmen and investors in the framework of a meeting organized by the Council of the Americas.

According to versions circulating in the market, from the Palacio de Hacienda they slipped that there would be some margin to consider some legal adjustments in the proposal, under the condition that the creditors who are still dissatisfied modify this position.

Blackrock, the toughest of creditors, managed to agree with two other groups of creditors the presentation of a joint counter offer, which was known last Monday, which calls for improving the economic part and the legal clauses in favor of creditors.

Based on market calculations, the distance between both parties is calculated in a total of US $ 1.6 billion in the economic plan.

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