Argentina Weighs Earlier Coupon Payments as Debt Talks Stall
(Bloomberg) -- Argentina is considering paying coupons sooner than previously announced, as it aims to close a gap with creditors in debt restructuring talks, according to people with knowledge of the matter.
Government officials weigh offering making interest payments as early as January and July 2021, said one of the people, who asked not to be named because the talks are private. A prior government offer proposed making interest payments starting in May and November of 2021.
The change would represent an improvement in the net present value of the deal for bondholders, while not affecting the country's annual gross financial needs, said one of the people. That means the proposal could fit with Argentina's aim of meeting certain debt sustainability guidelines. Argentine officials are also reviewing how to treat accrued interest, two of the people said.
The proposal could help bridge a divide between the government and creditors at a time where debt talks are not moving at the same pace with all the bondholder groups. Argentina's debt talks have stalled since the country and its creditors were unable to come to terms on key differences over how to restructure $65 billion in overseas bonds. The country, which entered the ninth default of its history in May, extended the deadline for its talks for a fifth time until July 24.
READ MORE: What's the Holdup? Four Sticking Points in Argentine Debt Talks
The Ad Hoc and Exchange bondholder groups, which includes BlackRock Inc., Ashmore Group Plc. and Monarch Alternative Capital LP, said earlier today they have had no meaningful discussions with Argentine authorities since June 17, according to a joint emailed statement. The groups urged officials to move ahead on debt talks and added that they are willing to engage constructively to reach a consensual agreement.
A spokesman for Argentina's Economy Ministry declined to comment.
Last week, Economy Minister Martin Guzman said the country had reached an understanding “on a number of important issues” with a third group of bondholders, called the Argentina Creditors Committee, but that there had been more differences with the Ad Hoc group.
The nation's dollar bond due in 2028 were little changed Wednesday morning at 40.2 cents on the dollar. The country's bonds have traded flat since the country defaulted in May, following a recommendation by the Emerging Markets Traders Association.
©2020 Bloomberg L.P.
-
Opinion | India at 38: From Innovation Overperformer to Innovation Powerhouse
India now has 453 VC-backed deep science startups, 18 of them late-stage, after 117 percent growth since 2020. Laurus Labs, at USD 9.3 billion, is the most valuable deep science company in any middle-income economy outside China.
-
Navigating Energy Crossroads: S Jaishankar's Call For Diversified Supply Chains At G20 Ministerial Meeting
As geopolitical fault lines continue to test maritime trade routes and commodity flows, Jaishankar's message remains pertinent: true economic resilience requires open markets, protected transit lines, and a genuine commitment to multilateral cooperation rather than coercion.
-
Indians Are Travelling, But Not Every Journey Is A Holiday | The Week In Whys
Pilgrims, patients and working women are the real travellers, and the system hasn't quite caught up with them.
-
Getting To Work Costs Women More | The Reason Why
It is not just about women paying more than men. It is about women paying much more in cities than in villages.
-
AI Bias In Investing Cannot Be Eliminated, But It Can Be Governed
Framing is a particularly important example as identical financial information presented in terms of gains rather than losses can lead an LLM to reach a different assessment.
-
Joining The Dots | Dark Skies, Steady Diya: Why Hope Holds This Diwali
With war, a weak rupee and foreign outflows weighing on sentiment, policymakers at the NDTV World Summit and market veterans at NDTV Profit Ignite: Diwali Edition offered the same advice: stay invested and filter out the noise.
-
The Curious Case of Equitas Small Finance Bank And A CEO Who Quit For Stock
PN Vasudevan believes persistent investor concerns over a perceived conflict of interest had become a governance overhang on Equitas Small Finance Bank's stock, even as the lender improved profitability and asset quality.
-
Talking Points This Week: AI Cash Burn, A Tiger Comeback And An India That Still Finds Its Own Path
India is not immune to higher oil or tighter global liquidity, yet its earnings base is broader, its domestic policy levers are still available.
-
Foreign Investors Own Half Of HDFC Bank and ICICI Bank. An LTCG Cut Could Matter Most Here
Foreign portfolio investors have US$115 billion parked in HDFC Bank, ICICI Bank. If the government cuts long-term capital gains tax, Jefferies says returning foreign money could land here first.
