Restructuración de la deuda: ¿Cómo seguimos?

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Restructuring the Debt: How Do We Proceed?

Fourth week
June 2020

Once again, Argentina got its debt restructuring proposal under foreign law rejected: on June 17 Argentina made its third offer, an improvement compared to those submitted in April and May. In general terms, the latest proposal was characterized by a shortening in the grace period for interest payment down to a year, a slight increase in coupons, and a lower capital reduction, from 5%-7% to 3%. In addition, it includes an instrument to pay for accrued interest and, as a novelty, it formally introduces new instrument linked to the evolution of exports. The current value of the Argentine proposal was around USD 52, while creditors are looking for something in between USD 55 (BondholderGroup) and USD 60 (AdHoc + Exchange BondholdersGroup), assuming a 10% exit yield.