Despite avoiding speaking out for or against Argentina’s proposal to the bondholders for the payment of external debt, the International Monetary Fund (IMF) said it expects an agreement with a “high stake”.
Gerry Rice, the agency’s chief spokesman, said this morning at a press conference: “We are confident that a high-stake agreement can be reached by creditors that debt sustainability can be restored with a high probability.”
The official avoided demonstrating on the offer made by the country, and the three-year grace period it includes. “The negotiations are bilateral,” he said. Argentina took as political support the IMF’s March technical report, in which the agency’s staff recommended a strong relief in the country’s maturity burden in the coming years.
“We are ready to help Argentina, especially in these difficult times, as the government seeks to respond to the health and economic effects of coronavirus and develop an economic plan that restores sustainable and inclusive growth in the medium term,” Said Rice.Martín Guzmán said Wednesday that it is ready to hear a counteroffer from creditors, under the parameters set by the Fund in that report.
“It hasn’t been easy to negotiate. We are emphasizing the principle of flexibility. Some (creditors) accepted and with others we are trying to reach an agreement,” the official said.
Guzman further admitted that it was the three-year grace period that generated the greatest controversy among the bondholders. In this note:
