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LatinNews Daily - 15 January 2020

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In brief: Buenos Aires province seeks extension on bond repayment

*The governor of Argentina’s Buenos Aires province, Axel Kicillof, has called on holders of bond 10.875% 2020 issued by the provincial government to accept a deferral of the repayment of US$273m due on 26 January to 1 May. Kicillof explained that Buenos Aires’s current debt burden is “unsustainable,” and that the provincial government currently lacks the funds to meet the repayment. The announcement follows news that Argentina’s federal government would not provide emergency funds to the Buenos Aires government to help it meet its debt obligations. Following Kicillof’s remarks, the value of the bond fell 5% while Argentina’s country risk rating rose by 1.4% to 1,854 points and Argentine treasury bonds fell by 6% in a sign of waning market confidence in the Buenos Aires and the Argentine governments' ability to renegotiate their respective debts.