Government of Argentina will postpone the payment of its debt until 2023

“They ask us for more fiscal adjustment, fast and in more quantity. That would destroy the opportunities of millions of Argentines and we will not allow it, “said the economy minister.

This Thursday, April 16, 2020, Martín Guzmán, Minister of Economy of Argentina, announced that, this Friday, he will present the proposal to pay the external debt. This contemplates the postponement of commitment payments until 2023.

“Today we cannot pay anything and we cannot do it for several years,” said Guzmán, who is trying to reach an agreement with creditors, holders of Argentine debt bonds.

This proposed debt restructuring of $ 68,843 million, issued under external legislation, includes, in addition to a three-year grace period, 62% interest withdrawal, and a reduction of USD 3.6 billion in capital stock.

In this framework, the Argentine Government and the International Monetary Fund (IMF) have considered that the debt of the South American country is “unsustainable”, for which reason they asked the bondholders to accept important discounts.

“They ask us for more fiscal adjustment, fast and in more quantity. That would destroy the opportunities of millions of Argentines and we will not allow it, “emphasized the official. In addition, he added that the limit is the offer that would be presented this Friday, April 17.

According to Guzmán’s statements, the creditors will have 20 days to analyze the conditions proposed by the Casa Rosada. In that period, there will be “people playing very hard,” because there are “many interests at stake,” he stressed.

For his part, President Alberto Fernández recalled the way out of the 2001 crisis, when, two years later, he was head of the Cabinet of the Government of Néstor Kirchner.

«We decided to do the same as in 2003. At that time we had to face an inherited default and this time a virtual one. But we are committed to getting out of this situation. We are going to pay the debt without there being more postponements for the Argentines, “said the president.

Source: RT

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