Lacunza announced the restructuring of the public debt …



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The government announced a debt restructuring with bond creditors, banks and the International Monetary Fund. After acknowledging the impossibility of meeting the following debt maturities, which was reflected in the fact that the letters received on Wednesday were dropped, the Minister of Finance, Hernán Lacunza, presented four points which aim to prolong the deadlines of these and others. Instruments The willingness of banks and creditors will be critical in determining whether the operation will succeed or not. That is to say that the Cambiemos government has led Argentina to a new cessation of payments. A week after taking office, Lacunza acknowledged that the agreement with the International Monetary Fund will have to be renegotiated and has not indicated whether a new disbursement of the agency would be made, as planned the month next. "We will recalibrate the deadlines with the IMF," confirmed the Minister of Finance.

The first point is a renegotiation of the terms of ownership and capitalization held by institutional investors, which represent 10% of the holders but more than 90% of the capital of these instruments. For these, the expiration will be extended between three and six months. For the individual holder, there will be, for the moment, a renegotiation of payment terms, according to the Minister. Lacunza did not provide details on the strategy to be followed if the banks refused to recover the deadlines as soon as possible.

The second measure announced by Lacunza is the sending to Congress of a bill on the restructuring of the local debt, which will be executed without deduction of capital or interest, in violation of the law on financial administration.

The third announcement includes an extension of the maturities of obligations under foreign law and contains a collective action clause.

The last point announced is the start of negotiations for a "reperfilation" of maturities with the IMF, which mainly fell in 2021-2022.

After a new exchange that brought the dollar to 60.17 pesos and in which the risk of the country exceeded 2100 points, Lacunza opened the press conference with a political message addressed to the opposition, which the government follows. trying to hold him accountable for his failure: "All political forces want to win the elections, but this is not an excuse to jeopardize the stability of all Argentines."

The Minister of Economy asked for the support of all political forces to advance the debt restructuring. "Nobody can alone, neither president nor legislator," said Lacunza.

After the political badessments, the minister announced the four debt restructuring initiatives.

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