Argentina defuses default crisis with ‘massive’ debt deal | Malay Mail

People wearing face masks shop at a supermarket, stockpiling food following the Covid-19 outbreak, in Buenos Aires Argentina March 15, 2020. — Reuters pic

“In recent days we have worked on the conditions of an offer that gained massive acceptance by our creditors as a result of the dialogue process in past months,” Economy Minister Martin Guzman told a news conference on Monday. Center-left President Alberto Fernandez, who took power in December, said Argentina had been in a “labyrinth” of debt that had now been solved. He thanked allies, including Pope Francis, an Argentine, and Mexican President Andres Manuel Lopez Obrador.

He said the government planned to send a 2021 budget bill to Congress in mid-September, which would include a forecast for a primary fiscal deficit next year of around 4.5 per cent. A new deal with the IMF is unlikely before March next year, said Guzman. The bonds being restructured have CACs that mean the government needs a certain level of support to restructure them. Older 2005 indenture bonds require a combined 85 per cent of creditor support, with two-thirds of support needed on each individual series.

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