Rescheduled Debt Payments Begin and Argentina Ceases to be in "Selective Default"

After the announcement of a rebalancing of debtOn Friday, the government will pay 15% of the nominal value of what it should pay on the initial maturity date of Letes, Lecaps and Lecer. Like this, the country is no longer in "selective default"said Thursday the US rating agency Standard & Poor's.

Debt maturities are part of the government's proposed rescheduling it plans to pay an additional 25% within three months and 60% in six months.

The Ministry of Finance headed by Hernán Lacunza plans to pay 15% of Lecap's expiry Friday at $ 169.95 from the WNV. It will remain $ 390.92 more on November 30, or 25% and the remaining 60%. approximately $ 871.43 on February 29.

A few hours after stating that, in accordance with its valuation standards, Argentina was in selective default, the risk rating agency said that since Friday, Argentina will cease to do it not. S & P said that if we take into account the new conditions of re-inflation by debt, the defect "has been healed".

As for the Lecer, Payments of $ 150 will be made this Friday, another $ 250 to 90 days month, and the remaining $ 600 at six months. In addition, dollar-denominated treasury bills will now receive payments of $ 150, $ 250 in November and the remaining $ 600 in February. The decision to reschedule these internal debt securities was taken because the level of renewal of these securities had declined sharply after the government's defeat within the OSPP against Alberto Fernández.

This lower level of renewal "raised doubts about the implementation of the financial program planned for the last four months of 2019".

The government announced Wednesday a program of renegotiation of the public debt Short, medium and long term to ease the interest burden in the coming years and to have more dollars at the Central Bank. This process will include a reprocessing of the deadlines.

For individual investors, the government will not change any terms of payment provided it has invested in this instrument before July 31st. Shareholders of mutual funds that hold these securities in their portfolios will also not be affected.