⌛ Did you miss ProPicks’ 13% gains in May? Subscribe now & catch June’s top AI-picked stocks early.Unlock Stocks

Buenos Aires renews creditor talks in 'last round' push for $7 billion debt deal

Published 07/05/2021, 02:08 PM
Updated 07/05/2021, 03:15 PM
© Reuters. FILE PHOTO: A man reads a newspaper as he walks in Buenos Aires' financial district, Argentina, April 18, 2016. REUTERS/Marcos Brindicci/File Photo

By Walter Bianchi

BUENOS AIRES (Reuters) - Argentina's Buenos Aires province has extended the deadline for a $7 billion debt restructuring deal and agreed to renew a "last round" of talks with creditors after more than a year of fraught negotiations.

The province, the South American country's wealthiest, said it would push the much-delayed deadline until July 23 for its foreign creditors to respond to its proposals after the previous cut-off passed last week without a deal.

The local government added in a statement that some of its bondholders, including members of the important Ad Hoc creditor committee, had agreed to enter once more into non-disclosure agreements (NDAs) to pursue talks.

"The province has extended the deadline of the invitation to engage in conversations with such bondholders," it said.

A government source close to the talks said the province had opened a "last round" of negotiations with creditors to reach an "agreement that grants sustainability to the debt in the short, medium and long term, before formally amending the invitation".

The person added the formal talks came after a period of "tense conversations" between the two sides and cited actions by the provincial finance minister Pablo López in recent days helping to get the two sides back to the table formally.

© Reuters. FILE PHOTO: A man reads a newspaper as he walks in Buenos Aires' financial district, Argentina, April 18, 2016. REUTERS/Marcos Brindicci/File Photo

"This would allow a definitive solution to be reached," the person said.

The winding talks, while the national government and other provinces have struck deals, have sparked tensions with creditors, who earlier this year filed a lawsuit against what they called a "continued default" by the provincial government.

Latest comments

Risk Disclosure: Trading in financial instruments and/or cryptocurrencies involves high risks including the risk of losing some, or all, of your investment amount, and may not be suitable for all investors. Prices of cryptocurrencies are extremely volatile and may be affected by external factors such as financial, regulatory or political events. Trading on margin increases the financial risks.
Before deciding to trade in financial instrument or cryptocurrencies you should be fully informed of the risks and costs associated with trading the financial markets, carefully consider your investment objectives, level of experience, and risk appetite, and seek professional advice where needed.
Fusion Media would like to remind you that the data contained in this website is not necessarily real-time nor accurate. The data and prices on the website are not necessarily provided by any market or exchange, but may be provided by market makers, and so prices may not be accurate and may differ from the actual price at any given market, meaning prices are indicative and not appropriate for trading purposes. Fusion Media and any provider of the data contained in this website will not accept liability for any loss or damage as a result of your trading, or your reliance on the information contained within this website.
It is prohibited to use, store, reproduce, display, modify, transmit or distribute the data contained in this website without the explicit prior written permission of Fusion Media and/or the data provider. All intellectual property rights are reserved by the providers and/or the exchange providing the data contained in this website.
Fusion Media may be compensated by the advertisers that appear on the website, based on your interaction with the advertisements or advertisers.
© 2007-2024 - Fusion Media Limited. All Rights Reserved.