LatinNews Daily - 17 March 2020

* The Argentine government has issued a resolution (130/2020) announcing its plans to seek authorisation from the US Securities and Exchange Commission (SEC) to renegotiate an initial US$30.5bn of its sovereign debt issued under US law. This is another step forward in the plans by the government led by President Alberto Fernández to resolve Argentina’s unsustainable debt levels and restructure the debt held by foreign private creditors (bondholders). The Fernández government has said that it wants to restructure US$68.8bn of the country’s foreign debt and has urged creditors to accept lower returns, longer repayment schedules, and even a reduction in the value of the bonds (condoning of debt). It originally planned to present a formal offer to foreign bondholders last week, with a view to concluding the renegotiation process before the end of March. But it decided to delay this in the wake of the turmoil in financial markets produced by the coronavirus (Covid-19) pandemic, which has led to the value of Argentine bonds to plummet and for its country risk spread to soar.    

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