Argentina bondholders set up creditor group to talk with new government
“A group of large institutional holders of outstanding debt securities issued by the Republic of Argentina are collaborating together with the objective of facilitating a constructive dialogue with the Republic’s new administration, anticipating potential liquidity challenges that the Republic may face in the coming months,” the group said in a statement.
The group said it had designated UBS Securities and Mens Sana Advisors as financial advisors and did not specify a lead creditor.
A spokesman for the Argentine Ministry of Economy declined to comment. A spokesman for the Presidency did not immediately reply to request for comment.
The group said it was committed to conducting talks under G20-endorsed Principles for Stable Capital Flows and Fair Debt Restructuring, “which include transparency and timely flow of information, open dialogue, good faith actions, and fair treatment among creditor classes.”
UBS Chairman Axel Weber played a big part in crafting the group, said a member who requested anonymity. Weber is also chairman of the Institute of International Finance, which last week penned a letter to Argentina’s new Economy Minister Martin Guzman urging him to begin talks with creditors.
Reuters has previously reported the existence of at least three bondholder groups.
Argentina’s recently inaugurated government is preparing for negotiations with creditors including the International Monetary Fund (IMF) to restructure around $100 billion in debt after a sharp market crash earlier this year.
(Reporting by Marc Jones in London and Cassandra Garrison in Buenos Aires; writing by Rodrigo Campos; Editing by Chris Reese & Shri Navaratnam )