Argentina today presented to the U.S. market regulator, the SEC, the invitation to the bondholders to renegotiate debt of US$66,238 million, with a 62% reduction in interest and 5.4% in equity, with a three-year grace period. The presentation by the national government proposes to «invite» certain bondholders under foreign law to «exchange these instruments for new bonds issued by the Republic».
The offer is eleven new bonds, with maturities until 2047, which will be exchanged for the 21 Argentine bonds in circulation. The offer involves a reduction in the interest burden of 62% (US$37.9 billion), relief in capital stock (5.4%, US$3.6 billion) and a three-year grace period, until 2023.
The payment of external debt should not compromise the future of Argentines and Argentines. We must return to the path of sustainability. I am grateful for the support of the Argentine proposal by the governors and legislators of all political forces. pic.twitter.com/4plc1FhKIh— Martín Guzmán (@Martin_M_Guzman)
April 16, 2020
From 2023 on, the Government would start paying an average coupon – an interest rate – of 0.5%, while the average would eventually be around 2.33%.