Argentina's government sending bill to Congress to solve debt crisis
Argentina’s new government is seeking to push through legislation to help solve a mounting debt crisis as the country struggles to make repayments to global creditors.
Economy Minister Martín Guzmán said on Tuesday he would send a “debt sustainability” bill to Congress aimed at creating a legal framework to improve debt terms on at least $100 billion in bonds and $44 billion in IMF debt.
“This bill, this law will give us the conditions to be able to structure and execute the operations needed to achieve the aim of restoring the sustainability of public debt,” he said.
“Today we have an unsustainable debt burden that mortgages the futures of all Argentines.”
Guzman, 37, was tapped by center-left President Alberto Fernández, who took office just last month, to revive the economy and lead debt talks.
They inherited twin economic and debt crises from right-wing predecessor Mauricio Macri.
Fernández faces a $195 billion public foreign debt - much of which has been in default since September - 54% inflation, 41% income poverty, and a 6% fall in GDP since the current “Macrisis” began in April 2018.
Columbia professor and Nobel laureate Joseph Stiglitz, Guzmán's mentor, foresees “significant haircuts” - though likely a fraction of the 48% discount most Argentine bonds are currently trading for.
The nation's most commonly subscribed sovereign bond, Bonar 24, recovered early losses today. It's value has risen 38% since Fernández took office.
At: https://www.reuters.com/article/us-argentina-debt/argentinas-government-sending-debt-bill-to-congress-to-solve-crisis-idUSKBN1ZK1T2
Argentine Economy Minister Martín Guzmán during today's announcement.
The bill being drafted will include a rescheduling and restructuring of over $100 billion in national bonds, and will seek a rescheduling of a $44 billion debt taken on by the former Mauricio Macri administration in hopes of saving his re-election chances.
“We want to make promises that can be fulfilled. Make commitments that are feasible to honor,” Guzmán said.