This archive report was first published on 5 July 2020.
Argentina's President Alberto Fernandez announced a new proposal to restructure $66 billion in bonds issued under foreign law, extending the deadline for negotiations with bondholders until August 28.
The new offer, which will be published in the official bulletin and presented to the Securities and Exchange Commission in New York, represents a significant increase from the original proposal of $39 per $100, with the new offer being 'close to $53' for every $100, according to a government source.
The government's latest effort is aimed at reaching an agreement to restructure a fifth of the country's $324 billion debt, which amounts to around 90 percent of its GDP.
Fernandez expressed hope that the negotiations, which have been ongoing since 2018, will end well, despite the country's economy being in recession and further punished by the coronavirus pandemic.
The International Monetary Fund estimates the economy will contract by 9.9 percent this year, and Fernandez has insisted that any deal with creditors be sustainable so that the country can meet its obligations over the long term.
"If this is analyzed rationally, what we are asking is not that (the creditors) lose, but that they stop earning what they earned in excess," Fernandez said, accusing his predecessor Mauricio Macri's government of agreeing to terms not seen anywhere else.
