Argentina to Seek New IMF Plan However Debt Talks Turn Out
Posted On 08/01/2020 03:47:39 by freemexy

Argentina to Seek New IMF Plan However Debt Talks Turn Out

Argentina will seek a new program with the International Monetary Fund whatever the outcome of talks with holders of its $65 billion of defaulted overseas bonds, Economy minister Martin Guzman said.To get more news about WikiFX, you can visit wikifx news official website.

  Guzman also reiterated that the country has reached its upper limit in what its prepared to offer creditors, though said the government would consider improving the legal terms of the offer.

  "After the debt restructuring process with the private creditors, we expect to request a new IMF program that replaces the previous one that didnt work," Guzman told Bloomberg Television in an interview Tuesday. "This is going to happen regardless of what happens with private creditors."

  South Americas second-largest economy, which is at a crucial point in its bond restructuring process, also has on hold a $56 billion stand-by IMF agreement negotiated by the previous administration. The government is working on plans to boost tax revenue and curb the fiscal deficit, though this will take longer than the country and the IMF originally projected due to the pandemic, Guzman said.

  WATCH: Argentinas Economy Minister Martin Guzman says the country is fully committed to fiscal consolidation as a group of creditors seeks to extract better terms from the government in its $65 billion debt restructuring

Fiscal consolidation has to occur to a pace that allows the economy to recover, and to sustain that recovery," he said.

  Argentina faces an Aug. 4 deadline with its proposal to restructure its overseas debt after falling in default this year for the ninth time in the countrys history.

  "We significantly improved the offer, and we reached a point that is the maximum effort Argentina can make without compromising the social course we are trying to achieve," Guzman said, echoing comments made recently by President Alberto Fernandez. "We have made a massive effort."

  Read More: Argentina Post-Virus Recovery Unclear Amid Unbalanced Policies

  The country still doesn‘t have the support of the three main creditor groups, which say they represent holders of more than 50% of Argentina's overseas debt after joining forces with other funds this week. The latest creditor proposal demands a net present value about 3 cents per dollar above current government offer of about 53 cents, according to a Goldman Sachs Group Inc. report.

  The groups originally included funds such as BlackRock Inc., AllianceBernstein and Monarch Alternative Capital LP, and now includes BlueBay Asset Management LLP, Fidelity Management & Research Co. and Amundi Asset Management, among thirty firms that have joined forces.


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