UPDATE 1-Creditors threaten Buenos Aires province with tough repayment terms


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(Addition of a declaration of the provinces)

BUENOS AIRES, Jan.29 (Reuters) – The Argentine province of Buenos Aires, which owes $ 7 billion in foreign debt to a group of creditors, could face tough repayment terms if it does not urgently address the defaults payment, the group of creditors said on Friday.

Since an offer in April was rejected by bondholders, the province has repeatedly pushed back deadlines for talks with the group. Meanwhile, the Argentine government recently reorganized nearly $ 110 billion in foreign currency bonds.

The steering committee of the Buenos Aires Ad Hoc Bondholders Group said Thursday it was concerned about “a continued lack of progress in resolving the province’s long-standing default on its outstanding international bonds.” .

“In the absence of a decisive change of course on the part of the province, which the group has repeatedly requested, the members of the group will have no choice but to exercise their available remedies under the obligations. outstanding, ”the creditors said.

Their actions could include accelerating the payment of some or all of the outstanding bonds and the legal enforcement of bond contracts, the group said.

The Buenos Aires government issued a joint statement with other provinces on Friday, reaffirming its willingness to negotiate restructuring but “rejecting the use of judicial pressure tools to force unsustainable solutions.”

Argentina has been plunged into an economic crisis since 2018 and is heading into its third consecutive year of recession, with an expected contraction of nearly 12% this year, as well as a currency crisis that has led to tight capital controls.

Recently, Cordoba, the second province of the country after Buenos Aires in terms of contribution to the GDP, reached an agreement with its creditors to restructure 1.7 billion dollars of its debt. (Reporting by Shariq Khan in Bangalore and Walter Bianchi in Buenos Aires; editing by Shinjini Ganguli and Paul Simao)

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