Argentina has improved the debt restructuring offer to its creditors up. President Alberto Fernandez spoke of a “last attempt”, the abfordere his country, maximum efforts. At the same time, he set a deadline for the acceptance of up to 4. August. The South American country can no longer service its debt and may be insolvent.
Markus Frühauf
editor in the economy.
F. A. Z. Twitter
to move It tries to foreign investors, the bonds in the amount of approximately $ 65 billion and hold, a waiver of a significant portion of their claims. The negotiations with the investors were at an impasse, after two groups of creditors had calls for stronger safeguards to be loaded.
The government in Buenos Aires reacted with the offer to exchange Bonds with bond conditions from the year 2005 in new papers with the same bond conditions. In addition, the improved offer includes, among other things, higher interest coupons. If the talks collapse, Argentina is in danger of losing access to international credit markets, and in addition, a lengthy legal dispute with an uncertain outcome.
The country has already recorded nine state bankruptcies in its history, is in recession and is struggling with the consequences of the Virus crisis.Minister of Finance Martin Guzman had declared in may, just in the Virus-times could not spend, Argentina 20 per cent of its government revenues on interest payments. The country is expected because of the Corona, and in this year, our economy shrank by around twelve percent. The inflation rate was more than 50 percent.
government bond Argentina 2016/27 ARGENTINA 16/27 — — (–) Stuttgart, Frankfurt, tradegate 1T 1W 3M 1J 3J 5J For detail view
The International monetary Fund, the debt load of the country as unacceptable means. Argentina sits a total of 323 billion dollars in debt (as of end 2019). The country had already slipped in 2001/02 in which the country is bankrupt, after it had served its debts. Thereafter, the government had to come up with the most donors on debt relief, and exchange of bonds agreed.
Several hedge funds bought the Bonds at comparatively low prices, refused to open for a haircut. An agreement after years of dispute-free was ultimately the way for Argentina to enter international credit markets again. But this is now threatened again. Since February, Argentina no longer supports its debts.
The rating agencies Standard & Poor’s and Fitch have classified Argentina as insolvent. A first debt restructuring offer had rejected the creditor. For Bonds with a face value of $ 65 billion Argentina offered to lower the interest rate, debt rate of 62 per cent and the debt to 5.4 per cent, in favour of the creditor to wait three years before the country would start with additional repayments.
