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  • Argentina's President Alberto Fernandez.

    Argentina's President Alberto Fernandez. | Photo: EFE

Published 2 June 2020
Opinion

The negotiations will extend until June 12 with the idea of seeking to get creditors to lower their claims.

The Government of Argentina's President Alberto Fernandez Monday decided to extend the deadline for negotiations to reach an agreement on the country's foreign debt, despite pressure from large investment funds.

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The negotiations will extend until June 12 with the idea of seeking to get creditors to lower their claims.

The Government maintains hermetism regarding what is the Net Presidential Value (NPV) they are looking for to seal the exchange. 

As of the new offer, made on May 26, the NPV is around $47 USD on average for each 100 sheets.

The NVP is a concept used in finance that consists of updating future collections and payments to know how much will be gained or lost with an investment. 

With this, bondholders can gauge how much they stand to gain or lose from the bond swap.

Yesterday, the International Monetary Fund (IMF) issued a statement supporting the new offer made by the Minister of Economy, Martin Guzman.

Specialists from that Ministry have considered that the revised proposal is still consistent with the restoration of sustainability.

A higher value could make the sustainability criterion lose, IMF officials said.

The Fund is neither judge nor party, but it has a clear interest in this negotiation ending well, given that the country owes it $44 billion USD.

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