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  • Argentina's Economy Minister Martin Guzman, during a conference, presents a good faith offer to private bondholders. Buenos Aires, Argentina, April 16, 2020.

    Argentina's Economy Minister Martin Guzman, during a conference, presents a good faith offer to private bondholders. Buenos Aires, Argentina, April 16, 2020. | Photo: EFE

Published 20 April 2020
Opinion

This proposal is the best opportunity to build a better country, according to President Alberto Fernandez.

A group of bondholders on Sunday rejected the Argentinian government's proposal, which aims to remove 62% of debt issued under foreign legislation, local media reported.

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The proposal made by Argentina's Ministry of Economy to the bondholders last Thursday provides a three-year grace period without any payments, with a reduced deduction on the capital and a 62% cut in interest, totaling US$ 41.5 billion.

This proposal is "the best opportunity to build a better country," Argentinian President Alberto Fernandez said after Guzman announced the details of the proposal.

However, the Committee of Creditors of the Argentine debt (ACC) considered on Sunday the proposal of the Ministry of Economy unviable.

The Group of Holders of Exchangeable Bonds announced on Monday that it also rejected the government's proposal.

"With the support of all the governors and other political forces, together with Minister Martin Guzman, we present today a good faith offer to the private bondholders, which makes the payment of Argentina's public debt sustainable."
 

In a statement issued Sunday, the ACC assessed the measure as unilateral, seeking "more reduction of interest than capital."

The rejection was predictable, said specialists, as this was the first proposal of the government. 

"Reaching an agreement with the private bondholders will make the payment of Argentina's public debt sustainable." Alberto Fernandez said recently on his Twitter account.

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