Lacunza and the new measures: "We will engage in a dialogue with the IMF to postpone deadlines"

Finance Minister Hernán Lacunza announced today an extension of short-term debt maturities, sending a bill setting new "voluntary" debt the local jurisdiction, without any capital or interest suppression, as well as for obligations under foreign law, and a start of dialogue with the IMF "to rebalance the deadlines of its debt with this international organization".

Given the "low rates of renewal of bills in the short term, to which are added the few expectations in terms of renewal of future maturities, four measures were decided," he said in a statement issued shortly after the Lacunza press conference.

As for the Letes, he pointed out that, for institutional investors, "each maturity will be paid at 15% on the expiry date, 25% at three months and 60% at six months and that" each title will benefit from its corresponding rate up to the date of payment ".

"In the case of LECAP expiring after 2020, they will only be extended for three months," he added, adding that "human beings will not be affected, as long as the amount they have credited on the client's account to date "maturities is equal to or less than the amount entered in the same account as at July 31, 2019".

In addition, "to clarify the financial needs of the 2020-2023 period and allow the president who will win the next elections to deploy its economic and social policies without excessive financial conditions", will be presented to Congress ", a bill providing the tools necessary to: promote voluntary re-inflation of capital maturities under local jurisdiction without capital or interest suppression and with the sole extension of terms ".

At the same time, he announced that "a process of rebalancing the obligations governed by foreign legislation will be launched, in accordance with collective action clauses" and "to that end tomorrow, we will invite banks to submit proposals ".

He also said that it had been proposed to the IMF "to initiate the dialogue, which will end inexorably at the next mandate, to rebadess the deadlines of its debt with this international organization".

The Treasury has stated that "it is only a readjustment of the term" and that it does not involve any withdrawal of capital or changes in interests.

"Human persons will benefit from special treatment in this reperfilamiento, they will have all their credits on the date of expiry provided in the corresponding title," concluded the statement.