Buenos Aires province extends deadline for debt renegotiation talks to July 31
June 22, 2020 |
Province says in Sunday statement it anticipates progress to be made
Buenos Aires province said in a statement late on Sunday it has extended the deadline for talks with creditors to restructure $7.15 billion in foreign law bonds until July 31.
"As of this date, talks with the main creditors that have not yet accepted the proposal are still in force and it is anticipated that progress will be made in the framework of a restricted dialogue in the coming weeks," the province's statement released on its website said.
The province, Argentina's largest, is following the same pattern as the national government which announced last week an extension of its deadline to renegotiate $66 billion worth of foreign law bonds until July 24.
On April 23, the province launched its offer, asking for a three-year grade period, a 55% reduction in interest payments and a 7% discount on principal payments. It also included two interest-only bonds as a sweetener. The negotiations had been extended already to June 19th
"The Province will continue to make every effort within its reach to provide a definitive answer to debt sustainability," the statement added.
Analysts have said that for the provinces to restructure their foreign debts, Argentina must reach a deal first because a larger default by the sovereign would mean that any deal reached by a sub-sovereign would likely be scuppered.