The offer will also adapt certain legal aspects of the Collective Action Clauses (CCCs) that will determine how future changes to borrowing contracts can be made. These had become a central point of disagreement in the discussions. Argentina`s Chubut province said on Saturday it had reached a debt-in-principle agreement with a majority of its creditors after a successful debt restructuring earlier this year opened the door for local governments to resolve their regional crises, Reuters reported. Chubut and its bondholders will restructure $680 million of bonds maturing in 2026 and exchange them for bonds maturing in July 2030, the province said in a statement. In addition, Argentina`s debt restructuring agreement The three groups of creditors – the ad hoc group, Argentina`s creditors` committee and the Exchange Bondholder group – said they were delighted to have reached an « agreement in principle » that would reduce the debt and boost Argentine issuers` access to international capital markets. In a statement, the Economy Ministry said www.argentina.gob.ar/sites/default/files/press_release_roa_2.pdf it would adjust certain payment dates and legal clauses to soften the proposal announced at the beginning of July as a « definitive » proposal, without increasing the overall distribution of capital or interest rates. Argentina has announced an agreement with international creditors on the mountain of money it owes them. A $66 billion restructuring of debt could narrowly escape bankruptcy. The agreement, which has not yet been concluded, includes obligations supported by provincial oil and gas licences from operations throughout the southern province of Patagonia. Argentina`s international creditors, which is in the grip of a tumultuous debt restructuring this year, want the International Monetary Fund`s new programme to reach the country on ultra-strict terms, Reuters reported. Argentina and its provinces restructured a $100 billion debt two months ago, but the country`s bonds have lost nearly 30% since they were restarted as concerns about the government`s economic strategy persist. On Monday, Economy Minister Martin Guzman, who adopted the restructuring of Latin America Tuesday`s agreement was reached because the previous deadline, which had already been extended several times, was due to expire. Buenos Aires now says creditors have until August 24 to formally approve the deal.
The Chubut government said in a statement that the agreement, if approved, would allow « substantial debt service relief in 2021, 2022 and 2023. » Chubut succeeded after a successful debt restructuring opened the door for local governments to resolve their regional crises earlier this year, the Suriname government asked creditors for a deferral of payment for its two bonds, worth a total of $675 million, which analysts said could be a prelude to a broader debt restructuring, Reuters reported. The South American government announced in a statement Saturday the launch of a request for approval of its two bonds, which expire in 2023 and 2026.