The Strategist

Argentina authorities ask to delay debt and interest payments


04/17/2020 - 03:35



The Argentinean government is proposing to holders of a public debt a plan for its restructuring, which provides for the absence of payments for three years, said Minister of Economy Martín Guzmán.



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"Argentina cannot pay today... And it will be unable to pay for a certain number of years. There must be a serious reduction in the debt burden," the minister said at a meeting between President and the governors.

He added that this issue was discussed in the framework of the G7 and G20 and received international support.

"We propose changing the debt structure that Argentina now has to one that would provide for a three-year grace period. The country would not pay anything in 2020, 2021 and 2022, but would start paying in 2023," the minister said.

The resumption of payments is supposed to begin with an interest rate of 0.5% with a gradual bringing it to a sustainable level. In addition to deferring payments, the government is asking for a serious reduction (by 62%, or $ 37.9 billion) in the interest itself, as well as writing off $ 3.6 billion from the debt itself.

These proposals will be presented for discussion to debt holders on Friday, Guzmán added. They will have 20 days to accept the offer or refuse it.

source: rfi.fr