- Argentina has already extended negotiations with private creditors three times;
- Guzmán guarantees that it will be the last offer to be presented to IMF.
In an interview with the newspaper Valor Econômico, Argentina‘s economy minister Martín Guzmán said that the country will seek a new agreement with the International Monetary Fund (IMF) for a deal to revamp about $65 billion in bonds. On the eve of the latest deadline for reaching an agreement with private creditors, Guzmán guarantees that this will be the last offer to be presented to IMF.
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The Argentine minister said that the country can’t pay the main part of the debt with IMF, even if an agreement is reached with private creditors to restructure its foreign debt.
We are going to have to negotiate a new program with the IMF. What we are looking for is not to have to make any capital payments to the IMF in the next three years, simply because Argentina does not have the capacity to make payments with private creditors or with the IMF
Martín Guzmán, Argentina’s economy minister.
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Argentina has already extended negotiations with private creditors three times. People familiar with the matter say the government would be willing to reach a market value of 49 cents on the dollar for each restructured bond while investors fight for 55 cents a dollar.
Last week, the country had obtained support from the IMF for the previous proposal. Now you will need to make a new effort to reach a new agreement.
To Valor, Guzmán said that among the country’s post-pandemic priorities are strengthening the capital market in the face of a lack of confidence in the Argentine currency, reducing the budget deficit (estimated to 10% this year) and increasing international reserves, today at $42.7 billion. Only then will Argentina no longer have retentions–export taxes–and such strict capital controls.
