Argentina Weighs Deadline Extension With Debt Positions Closer

Argentina Weighs Deadline Extension With Debt Positions Closer

17:46 - Government made public its latest offer after-hours Thursday. Two bondholder groups also submitted their own proposal.

Argentina is weighing extending the deadline for its $65 billion restructuring offer to private bondholders beyond June 2, giving the two sides more time to reach a deal, according to people with direct knowledge of the matter.

The government continues to work on amendments to the offer after making public a revised debt offer late Thursday, said the people, who could not be named because the talks are private.

The negotiations may be extended by at least another 10 days, one of them said. While both sides are still apart from an accord, latest changes from the government and the creditors signal that they are inching closer to a deal after the country defaulted on its overseas debt for the ninth time in its history.

In its revised offer Thursday, Argentina proposed a payment moratorium for just two years, instead of three. Two of the nation’s largest bondholder groups, which include funds such as BlackRock Inc., Ashmore Group Plc and Monarch Alternative Capital LP, also said they submitted a joint proposal Thursday that would provide the country with front-loaded cash flow relief of $36 billion over nine years.

The country’s debt negotiations started more than two months ago, as the country says it can’t meet its obligations amid high unemployment, a sharp drop in the value of its currency and a deep recession made worse by the coronavirus pandemic. Argentina’s latest offer won’t be binding until it’s sent for registration under the U.S. Securities and Exchange Commission.

Argentina has almost $600 million in payments on foreign-law bonds due this month, according to data compiled by Buenos Aires-based consulting firm 1816 Economia y Estrategia.

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