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ECONOMY | 15-06-2020 09:00

Fernández: Argentina working on improved offer to creditors

"We all want to avoid default, but we are acting with economic rationality," declares Peronist leader, confirming a new improved offer is on the way.

Argentina is working on an improved offer for bondholders as it seeks to seal a deal to restructure more than US$65 billion in foreign debt, President Alberto Fernández said Sunday.

The government's previous debt swap proposal has brought creditors closer to an agreement, despite their rejection of the offer, Fernández said in an interview with a local radio station in an interview.

Fernández noted again the government was showing willingness to improve its offer to creditors and that it was acting in good faith. He said the offer would be "closer to [the aims of] creditors."

"With all the difficulties [of the pandemic], we made an offer that was not accepted, but it served to make creditors understand the seriousness of the situation in Argentina. That is why we are now trying to make a new offer, demonstrating our good faith to agree [a deal]," the head of state told Radio 10.

The Peronist leader said that Argentina wanted a deal and to escape default, saying it would deprive the country of the growth it needs.

"We all want to avoid default, but we are acting with economic rationality," he said, adding that Argentina was making "an enormous effort" in order to seal an accord.

"The central problem we have is that it is a debt that was taken very quickly and has to be paid in a very short time. So, the restructuring of this debt is very complex," he added

Last Friday, the government extended a deadline for creditors to accept its restructuring proposal as reports emerged indicating the two sides were getting closer to a deal. The new deadline expires on June 19.

Economy Minister Martín Guzmán said Friday that officials would continue to negotiate with creditors over the weekend. Bondholders have said they are unlikely to take legal action while negotiations continue.

– TIMES/NA/BLOOMBERG
 

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