Buenos Aires―Argentina will present a new offer to restructure its debt on Monday and has extended its deadline for creditors to agree until August 4, the economy ministry announced on Sunday.
President Alberto Fernandez’s administration “will extend the expiration of the invitation (offer) until 5:00 pm in New York City” on that day, the ministry said in a statement.
The president had earlier stated the deadline would be pushed back to the end of August, saying “it is an enormous effort we are making. It’s the maximum effort we can make.”
The date for concluding negotiations with bondholders had previously been set on July 24 but was moved back in an effort to reach an agreement to restructure $66 billion in bonds issued under foreign law.
The bonds represent roughly a fifth of the country’s $324-billion debt, which amounts to around 90 percent of its GDP.
A government source told AFP the new proposal would be for “close to $53” for every $100, compared to the original offer of $39 per $100, which was rejected by a majority of the bondholders.
The ministry said it would also send Congress a bill in the coming days to restructure local debt in dollars “on equitable terms” to the bond swap under foreign law.
Fernandez said the conversations with creditors “are going well” and expressed hope “they end well.”
Argentina has yet to reach an understanding with creditors over interest rate reductions or grace periods.
In recession since 2018, the Argentine economy has been further punished by the coronavirus pandemic. The International Monetary Fund estimates it will contract by 9.9 percent this year.
With the backing of the IMF, Fernandez has insisted that any deal with creditors be sustainable so that the country can meet its obligations over the long term.