Creditors seek debt pact with Argentina

A major Argentina creditor group said yesterday it was committed to its own restructuring proposal, and it had been invited to sign a non-disclosure agreement by Argentina’s government, which defaulted on about $500 million (Sh53 billion) in bond payments a day earlier.

The Exchange Bondholder Group, which is comprised of 18 investment institutions and represents 15 per cent of Argentina’s exchange bonds, said in a statement that its counter-proposal submitted on May 15 provides “significant debt relief to Argentina and beyond doubt provides a sustainable debt structure for Argentina in respect of Exchange Bonds.”

Argentine officials are currently weighing counter-offers from its major creditor groups after their original proposal to restructure about $65 billion (Sh6.95 trillion) in foreign debt was stiffly rejected.

The South American country failed to reach an agreement by a May 22 deadline, prompting it to miss about $500 million in already delayed bond coupons, marking its ninth sovereign default.

Despite missing the deadline on Friday, a source close to the negotiations and familiar with the government’s thinking told Reuters on Friday that talks could reach a breakthrough “in a matter of days.”

The group said Argentina approached its representatives and other creditor groups’ representatives about signing a non-disclosure agreement “in contemplation of engaging in negotiations”.