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LatinNews Daily - 10 February 2021

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In brief: Argentina’s Salta opens debt restructuring offer

*The provincial government of Argentina’s north-western Salta province has formally presented its proposal to restructure bonds issued by the province and held by private investors. In a note sent to the Buenos Aires stock exchange, the Salta provincial government says that it wants to restructure US$350m of bonds issued in 2016 and maturing in 2024. The provincial government is proposing to swap these bonds for new securities maturing in 2027 and offering an interest rate of 4%-8.5% compared with the 9.125% interest rate offered by the original bonds. The Salta provincial government, which has set 19 February as the deadline for taking up the offer, says that 40% of bondholders have accepted the offer in principle. But for the restructuring to go ahead, it would have to be accepted by at least 75% of bondholders. Salta is one of five provinces currently seeking to restructure its sovereign bonds after five others successfully restructured US$3.98bn in recent months, amid growing concern about Argentina’s ability to service its debts.