Executive Branch Announces Project to Redefine Maturity Terms of Argentine Debt Securities
30 agosto 2019

On August 28, Finance Minister Hernán Lacunza announced a package of economic measures aimed at providing the Central Bank with additional tools to guarantee exchange rate stability. Among the measures is the bill to voluntarily extend the maturity of public securities (without taking away capital or interest). The initiative has not yet been presented, although there is speculation that it could be presented in the next few days. 

In addition to this measure, Lacunza highlighted other initiatives to “alleviate the financial burden in the short and long term,” such as the extension of Treasury bill maturities issued by the Executive Power (in pesos and dollars). This measure, which came into effect on August 29, only applies to legal entities. The regulations establish that legal entities possessing these titles will receive an initial payment of 15% on the maturity date of the bond, 25% at 90 days and the remaining 60% after six months, without any deductions to the principal or interest.

The minister also emphasized that they had begun a process of dialogue with the International Monetary Fund to re-profile the country’s debt maturities. The IMF subsequently reported that they are “in the process of analyzing the announcements and evaluating their impact” and stressed that the government “has taken these important steps to meet liquidity needs and safeguard reserves.” 

Lacunza is also due to appear next Wednesday before the Congress Bicameral Committee to Monitor and Control the Foreign Debt. The decision was taken jointly between the ruling party and the opposition and the idea is that the Economy Minister will provide details on the debt restructuring plan proposed by the Executive in the bill announced this week.