Argentina Creditor Groups Unite to Submit New Debt Proposal
Scott Squires and Jorgelina do Rosario, Bloomberg News
The Puente de la Mujer footbridge stands in the Puerto Madero neighborhood of Buenos Aires, Argentina, on Monday, Sept. 2, 2019. Argentines and investors alike are cautiously assessing the impact of President Mauricio Macri’s decision to impose capital controls on Sunday -- a blunt policy reversal aimed at containing the country’s escalating financial crisis. Photographer: Erica Canepa/Bloomberg , Bloomberg
(Bloomberg) -- Argentina’s three largest creditor groups joined forces to submit a new bond restructuring proposal that would provide the country more than $35 billion in debt relief over the next nine years.
The Ad Hoc group, the Exchange Bondholder group and the Argentina Creditor Committee, which represent investors including BlackRock Inc. and Ashmore Plc, said that they had agreed to form a negotiating bloc and reject the government’s latest offer.
The statement from the creditor groups suggests they’ll act as a united front in negotiations over $65 billion of defaulted overseas bonds, but the move may also pave the way for a deal by allowing government officials to work with just one entity that holds a sizable chunk of its debt.
“We are confident that a consensual resolution is in sight and that such an agreement will provide a path towards a sustainable economic future for Argentina’s people,” the groups said in the statement.
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https://www.bnnbloomberg.ca/argentina-creditor-groups-unite-to-submit-new-debt-proposal-1.1468197