By Hugh Bronstein
BUENOS AIRES, Jul 2 (Reuters) – Argentina’s creditors have 22 days to close an agreement to restructure around $ 65 billion in bonds, while the government is willing to advance its schedule of payments on the restructured debt to make the offer. more attractive, a source told Reuters.
The pressure increases as the July 24 deadline for an agreement approaches and the government’s ability to pay its debts is affected by the economic recession, which was aggravated by the quarantine that was ordered in March to contain the coronavirus expansion.
“We could bring payment dates forward within calendar years,” said a source close to the negotiations and familiar with the government’s thinking.
“Let’s say there is a payment due in November. That could be changed to July, or something that is due in August could be changed to February. That adds a lot of value to creditors without affecting our payment flows,” the source said.
The July 24 deadline will not be extended, he added.
“This will be the final offer because there is no way to pay anything else. We have a responsibility to sustainability both for ourselves and for the international financial community.”
“There is no reason to think that we could offer something better at a later date. Every time we look, the government’s ability to pay decreases and the demands of creditors grow. If there is to be an offer sometime later, it will be dramatically worse than this, “the source said.
A point of conflict has been the idea of linking the restructured bonds with the future growth of the Gross Domestic Product or with the country’s export earnings.
“There will probably not be a value recovery instrument linked to GDP or exports because there is too much difference between price and value,” the source explained. (Report by Hugh Bronstein, written by Eliana Raszewski. Edited by Javier Leira)
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