Argentina proposes $69 billion debt restructure plan
Argentina has finalized a proposal to restructure some $69 billion (21%) of the country's massive public debt, the government said Tuesday, hoping to delay the maturity of some institutional loans and reduce the amount owed to private creditors.
Since taking office in December, President Alberto Fernández's administration has insisted it will not be able to pay off its creditors if its recession-hit economy fails to resume growth.
The country is struggling with inflation of over 50%, $195 billion in public foreign debt, and a poverty level that has soared to over 40% after nearly two years of economic downturn.
Last week the government said it had recruited HSBC, Lazard, and Bank of America to help with the restructuring.
Argentina's total public debt is currently $325 billion - 75% of the country's GDP - with more than $30 billion in repayments due before the end of March.
That includes a deeply unpopular $45 billion bailout loan from the International Monetary Fund (IMF) negotiated by Fernandez's center-right predecessor Mauricio Macri in 2018.
Last month the IMF said Argentina's debt was "not sustainable" and urged the government to seek "a meaningful contribution from private creditors."
At: https://www.msn.com/en-us/news/world/argentina-proposes-69-billion-debt-restructure-plan/ar-BB10YF4w
Argentine Economy Minister Martín Guzmán and IMF Managing Director Kristalina Georgieva during a meeting in February.
Under Georgieva, the IMF has been supportive of Argentina's recent efforts to "address the rise in poverty, stabilize the economy, and secure a sustainable and orderly resolution of the debt situation."
