Argentina postpones payment of local debt until 2021

The decree does not specify the amount of the rescheduled debt, but the remaining maturities in 2019 are about $9.8 billion, according to estimates by economists.
Argentina postponed until 2021 the payments of interests and amortizations of capital of the public debt in dollars issued in the country, calculated in about 9.800 million dollars, due to the pandemic of the new coronavirus, according to a decree published this Monday. The decree does not specify the amount of the rescheduled debt, but the remaining maturities in 2019 are about $9.8 billion, according to estimates by economists.
Argentina postpones payment of local debt until 2021
Buenos Aires. - Argentina postponed until 2021 the payments of interests and amortizations of capital of the public debt in dollars issued in the country, calculated in about 9.800 million dollars, due to the pandemic of the new coronavirus, according to a decree published this Monday.
The government of Alberto Fernández is freed until December 31, 2020 to pay the bonds in dollars under Argentine law, which are not subject to international arbitration, pending negotiations to restructure $68,842 million of its debt with private creditors. under foreign jurisdiction.
The decree does not specify the amount of the rescheduled debt, but the remaining maturities in 2019 are about $9.8 billion, according to estimates by economists collected by the local press.
‘The global health crisis generated by the Covid-19 coronavirus pandemic has altered the terms provided for in the 'Schedule of actions for the management of the Restoration Process of the Sustainability of External Public Debt'‘, is explained in the published decree in the Official Gazette.
Despite this delay in payment, the Argentine government has about 3.5 billion dollars to pay this year in foreign currency securities issued under international jurisdiction.

‘Part of the plan’

‘This decision is part of the plan that we devised to restore the sustainability of the debt. A plan to establish conditions for Argentina that develops with social inclusion when we leave behind these harsh circumstances of the Covid-19,’ tweeted the economy minister, Martín. Guzmán, this Monday when reproducing the decree on the social network.
Argentina is trying to negotiate the restructuring of its debt for 68,842 million dollars with private bondholders under foreign law, and it intended to present an offer before March 31, but the schedule was delayed in the context of the health and economic crisis caused by the new coronavirus.
It is taken for granted that Argentina will request a significant capital and interest reduction, an approach supported by the International Monetary Fund, an organization with which the country has a debt of 44,000 million dollars.
The text of the decree maintains that ‘solving the situation of current macroeconomic inconsistency requires debt policies as part of a comprehensive program in order to restore the sustainability of public debt and regain a path of sustainable growth.’
This government measure ‘constitutes a terrible signal for the markets and further complicates the renegotiation process that is being carried out with international creditors,’ economist Luis Palma Cané warned Radio Miter.
The public debt of the third economy in Latin America is about 311,000 million dollars, equivalent to 90% of its GDP.
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