LatinNews Daily - 29 May 2020

* Argentina’s economy ministry has reported progress in its US$66bn debt restructuring negotiation with foreign bondholders ahead of the 2 June deadline it has set for reaching an agreement. The ministry announced improvements to the official restructuring proposal and its rejection of an enhanced joint offer from the Ad Hoc Bondholder Group and a second group of bondholders. Economy Minister Martín Guzmán described the creditors’ offer as “a significant improvement”, but said there is still “a way to go” to reach an agreement. The ministry’s own 26 May revision included concessions such as a shortening of the grace period on repayments for the majority of bonds to two years instead of three. Meanwhile, in the early hours of 29 May, the Ad Hoc group and the Argentine Exchange Bondholder Group published a statement confirming they had submitted a joint proposal that is “more favourable” for Argentina, taking into account the challenges presented by the coronavirus (Covid-19) pandemic. However, the only details provided on the particulars of the offer were that it included “front-loaded cash flow relief in excess of US$36bn” over a nine-year period. Guzmán noted that the Ad Hoc group, which includes US investment management firm BlackRock, remains the group that is furthest away from striking a deal.

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