Left Menu
Development News Edition

Argentina, creditors get ready to resume debt talks after default

Reuters | Updated: 23-05-2020 21:58 IST | Created: 23-05-2020 21:58 IST
Argentina, creditors get ready to resume debt talks after default

A major Argentina creditor group said on Saturday it was committed to its own restructuring proposal, and it had been invited to sign a non-disclosure agreement by Argentina's government, which defaulted on about $500 million in bond payments a day earlier.

The Exchange Bondholder Group, which comprises 18 investment institutions and represents 15% of Argentina's exchange bonds, said in a statement that its counter-proposal submitted on May 15 provides "significant debt relief to Argentina and beyond doubt provides a sustainable debt structure for Argentina in respect of Exchange Bonds." Argentine officials are currently weighing counter-offers from its major creditor groups after their original proposal to restructure about $65 billion in foreign debt was stiffly rejected.

The South American country failed to reach an agreement by a May 22 deadline, prompting it to miss about $500 million in already delayed bond coupons, marking its ninth sovereign default. Despite missing the deadline on Friday, a source close to the negotiations and familiar with the government's thinking told Reuters on Friday that talks could reach a breakthrough "in a matter of days."

The Exchange Bondholder Group said Argentina approached its representatives and other creditor groups about signing a non-disclosure agreement "in contemplation of engaging in negotiations with the Ministry of Economy." At least one other main creditor group has signed the non-disclosure agreement, a source from that committee said.

It is common during debt restructurings for creditor committees to agree to limit the flow of information near the end of talks, as some of it may be material and non-public, a source from one of the groups said. In some cases when multiple creditor groups are involved, as is the case with Argentina, a non-disclosure agreement is introduced, the source said. A spokesman from the Ministry of Economy did not immediately respond to request for comment.

Economy Minister Martin Guzman has said talks were on a positive course despite an "important distance" left to reach a deal with creditors. Todd Martinez, director of Latin America sovereigns at Fitch Ratings in New York, cautioned that progress could be more challenging the longer the talks drag on.

"Should it be a default without signs of progress toward a resolution, it could heighten uncertainties and have some destabilizing effects, but these could be minimal if recent progress towards a deal continues," Martinez said.



Rethinking Rural Livelihoods in the Times of COVID-19

The reverse migration caused by COVID 19 pandemic has put an additional burden of about one crore people on Indian villages particularly in the states of Uttar Pradesh, Bihar, Bengal and Odisha. Besides increasing the risk of spreading the ...

‘Discounted Deaths’ and COVID 19: Anthropology of Death and Emotions

Death is a social event rather than the mere cessation of biological functions. As seen by anthropologists, death is not just physical but intensely social, cultural, and political....

Indigenous knowledge of communities a must for maximizing impact of community work

Generally, it has been observed that the majority of the academicians in higher education institutions neglect the wisdom of community people and throw their weight around thinking that they know everything and the community knows nothing. ...

In rebuking FBR, Pakistan’s courts take a stand for public health

The system, if implemented effectively, will allow Pakistans revenue service to combat the illicit trade in tobacco products and potentially add hundreds of millions of dollars to the states budget each year. ...


Latest News

Trees and poles fall as 'Nisarga' makes landfall near Alibaug

Cyclone Nisarga has made landfall near Alibaug on Maharashtra coast with the wind speed of more than 110 kms per hour and heavy rainfall, leading to falling of many trees and electricity poles, a Raigad district official said. The cyclone h...

A few SAIL employees test positive for COVID-19: Statement

Steel major SAIL on Wednesday said a few of its employees working at the companys corporate office in the national capital have tested positive for COVID-19. There are five employees whose coronavirus test results have come positive, a sour...

Cyclone: Over 40,000 living near sea coast in Mumbai evacuated

Over 40,000 people living near the sea coast in Mumbai were shifted to safer places in view of the cyclone Nisarga which made a landfall at Alibaug in neighbouring Raigad district of Maharashtra on Wednesday, officials said. When the cyclon...

Fikile Mbalula confident airports adhere to COVID-19 regulations

Transport Minister Fikile Mbalula has expressed confidence that the aviation industry and the countrys airports will adhere to COVID-19 regulations and directives, as the sector reopens.The Minister made the declaration on Wednesday at the ...

Give Feedback