Argentina shows debt proposal, but parts are still too far
The first details of Argentina’s debt restructuring proposal to bondholders were unveiled today, with Economy Minister Martín Guzmán calling for a 3-year grace period, a 5 percent haircut on principal and a 62 percent reduction in interest payments.
Bondholders will have 20 days to accept or reject the proposal, whose full details will be published tomorrow. While on first look the proposal looked more generous than expected, Guzmán admitted that “the reality is that we have not reached an understanding with bondholders on what a sustainable program would be”.
Speaking with The Essential, bondholders said the government looked like it wanted to reach an agreement, but the initial proposal was too low to convince them.