The Ministry of Economy announced the formalization of a modification to the original offer after weeks of negotiation. Monday is featured in the SEC
The Government made the new offer for debt creditors Argentina. It did so through a press release from the Ministry of Economy. And on Monday there will be a formal presentation to the investment funds, when the procedure is completed before the Securities and Exchange Commission (SEC), the regulatory body for the New York market.
The President of the Nation, Alberto Fernández, He expressed that this offer “is the maximum effort we can make” and added: “It is an enormous effort that we have made to fulfill our word, which was to make an agreement that allows Argentina to comply with creditors and that allows it Argentines not to postpone those who are postponed any longer. “
The first reactions speak of a noticeably improved version regarding the latest modifications that had transpired as part of the negotiations between the minister Martín Guzmán and the bondholders groups.
In any case, the market remains in doubt as to whether it will end up materializing a partial swap, in other words, only with part of the investment funds, while others will remain on the sidelines and eventually seek improvement through the courts.
Minister Guzmán modified the offer, subtracts the presentation on Wall Street
Expires August 4
These modifications will also be countersigned by means of a bill that will be sent to the National Congress in the coming days.
“This modified offer will be subject as of Monday to a subscription period that will expire on August 4 of the current year,” says the official statement, which also anticipates sending Congress a bill to restructure the public debt in foreign currency under Argentine law “on equal terms to the proposed exchange for debt in foreign currency under foreign law.”
“In this way, Argentina will be fulfilling the commitment of equitable treatment for public debt in foreign currency issued under foreign legislation and under Argentine law, a decision that we consider important to advance in the deepening of the capital market so as to allow for greater availability of financing and savings instruments governed by Argentine law ” explained the Minister of Economy Martín Guzmán.
“The new debt profile that emerges after the restructuring must be consistent with the economic recovery and the entrenchment of a growth path that will enable it to meet the current challenges imposed by the COVID-19 pandemic, the attention of which cannot be postponed while still being sustainable in the medium and long term, “added Guzmán.
Under these prerogatives, the national government embarked on a debt management strategy aimed at solving the situation in an orderly manner. In this framework, it has embarked on a process of negotiation with the Republic’s creditors, guided by the principles of “good faith, realism, common sense and mutual collaboration.”
The communication of the new offer was also made official to the IMF, which has supported the Argentine position
Maximum and last effort
Simultaneously, he maintained substantial and open communication with the International Monetary Fund, who agreed with the economic authorities of our country in considering the situation of the Argentine debt unsustainable and in the need to achieve a significant reduction in financial burdens in order for the country to recover its ability to pay.
The official communication highlights that this offer, as well as the content of the proposed treatment of the portion of debt in foreign currency issued under Argentine law, constitutes the maximum and last effort that Argentina can do to its creditors, without entering into a maturity dynamic that drowns the economy and seriously compromises the post-pandemic recovery.
“We have done our part on the basis of a full commitment to the principle of ending the debt crisis in a sustainable way. We hope that our creditors understand the restrictions we have, and value our willingness to reach an agreement that works for all parties. “concluded Minister Guzmán.
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