Roberto Lavagna spoke about DEBT and negotiation: what he said

The former economy minister spoke in favor of the negotiations that Martín Guzmán is carrying out before the country’s creditors

Former Economy Minister Roberto Lavagna praised this Thursday the government’s debt restructuring proposal and recalled that the US $ 4.571 billion already paid with the authorization of Congress should be deducted from the total.

Lavagna, who headed the 2005 debt swap as a minister, recalled that “in good faith,” and with the support of Congress, the government paid with reserves “$ 4.571 million to continue debt payments with an eye toward a arranged on March 31, 2020. ”

In a Twitter account, the former minister considered that “all offers must incorporate these payments as part of the commitments already carried out in good faith.”

Lavagna praised the government’s restructuring proposal, saying it was made “on the basis of good faith, in order to fulfill commitments in a manner compatible with the country’s necessary growth.”

“The official proposal thus leads to what is offered being greater and therefore more generous than what creditors calculate. The IMF has implicitly endorsed these data,” Lavagna said.

“The agreement based on the current proposal or the one that – according to the Government – could be reached, should not ignore this reality. Good faith and room for growth have been the basis for reaching a broad social and political consensus,” he added.

Lavagna recalled that when the government took over the public debt was in default, since the previous administration had “unilaterally reprofiled it”.

Negotiations would be extended

The Government is analyzing the extension of the negotiation terms for the restructuring of the public debt in dollars with large investment funds, while agreeing to partial closings with bondholders who accepted the conditions of the exchange, it transpired this Thursday.

Sources close to the negotiation explained that the Ministry of Economy would go ahead with small groups of investors who accepted the agreement., because this is allowed by the restructuring prospectus, if the acceptance rate of 65% is not achieved with all the bondholders.

With the large funds, with which the negotiations continue, it would extend the negotiations until May 22, where it will be defined whether or not Argentina enters into default, due to the non-payment of interest on the Global bonds, which matured on 22 December April.

The Government chose to have a period of 30 more days to make that payment, which it did not want to make, hoping to reach an agreement with creditors earlier, because those titles were incorporated into the exchange.

Economy would announce this Friday, after 6:00 p.m., the official end of the exchange, a statement extending the negotiation, because that possibility appears in the restructuring prospectus, among the powers that Minister Martín Guzmán can take.

The government was “willing” to receive counter-offers from the bondholders, although it warned them that this initiative must ensure the “sustainability” of long-term debt payments and not hinder economic growth.

Just one day after the close of trading, Argentine stocks had a good day scoring ADRs increases, the S&P Merval index climbed 4.9%, to 35,850 units, and bonds gained up to 6.1%.

In the local financial market, it is discounted that for now, an agreement will not be reached, so negotiations will continue for the next two weeks until the deadline of May 22, when a bond would default.

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Written by Argentina News

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