SUMMARY
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BUENOS AIRES, Argentina – Argentina on Tuesday, July 7, formalized a new offer to creditors by presenting its proposal to the United States Securities and Exchange Commission as President Alberto Fernandez’s government looks to restructure a $66-billion debt.
Creditors have until an August 4 deadline set by the government to agree to the restructure plan – an exchange offer to bondholders under foreign law.
The new offer is worth 53.5 cents on the dollar, a significant improvement on Argentina’s original starting position of 39 cents, which was rejected.
It also reduces the grace period from 3 years to 1 year, with payments beginning in September 2021.
Fernandez said that Argentina “has maintained a position open to dialogue and considering various proposals” put forward by creditors.
The center-left leader stressed that the South American country had “evaluated and considered” creditors’ points of view and “deeply analyzed their suggestions, within the confines of restoring debt sustainability.”
Crisis-wracked Argentina – one of the world leaders in food exports – has been in recession since 2018 and two months ago defaulted for the 9th time after failing to pay $500 million of interest on its bond debt.
It has been further rocked by the coronavirus pandemic and the International Monetary Fund predicts its economy will shrink by almost 10% this year.
Latin America’s 3rd largest economy actually owes $324 billion in total, a sum that represents around 90% of its gross domestic product. – Rappler.com
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