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ECONOMY | 08-07-2020 17:33

This is Argentina's final debt offer, Guzmán tells creditors

Economy minister describes talks as "a cold shower of reality for creditors," as they've come to realise Argentina's limitations.

Economy Minister Martín Guzmán has ratified that Monday’s debt restructuring proposal is the "final offer," pointing out that "this process of renegotiation began with the two sides far apart but they are now much closer – it has been a cold shower of reality for creditors as to the real situation in Argentina."

Interviewed by Telefé Noticias, Guzmán pointed out: "In the beginning the distance was enormous and the demands we received impossible to sustain but a process of negotiation was established, the two sides grew closer and we are now in agreement with one group but still not with other creditors."

Along these lines, Guzmán admitted to differences with the BlackRock investment fund, "the biggest in the world", as presenting the most objections within the renegotiation but "what we want is to resolve Argentina’s problem in a non-confrontational way, having a healthy relationship with our creditors. Which is why we have to be able to sustain this proposal because if we make promises we cannot keep, we’ll soon be in problems again."

Guzmán affirmed that the government "wishes to have a healthy relationship with the international economy, including the financial aspects," leaving open the possibility of the country returning to capital markets following an agreement over the debt. The new swap offer – which received a positive initial response from the markets – is estimated to imply a debt payment relief of US$30 billion.

On the other hand, the minister also spoke about the future of the post-pandemic economy: "Argentina and the world will have to learn to live with coronavirus and imbalances will be seen which will take some time to resolve," while assuring: "All the measures necessary to continue protecting people (including workers) will be taken so that on emerging from the pandemic Argentina will have the capacity to produce because it will have machinery which can be used by people able to work. It will also be important to work on demand responding and that will be a problem at global level."

– TIMES/NA

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