Argentina Makes Final Offer
Argentina’s government plans to restructure its $102.6 billion debt warning investors that the offer is final.
“There will be no improvement, there will be no new swap,” stated Finance Secretary Guillermo Nielsen.
The International Monetary Fund would not comment on any details of Argentina’s debt offer, other than the fact that they would only consider it after review.
“Our view is that completion of a comprehensive and sustainable debt restructuring agreement with the creditors is critical for Argentina’s economic prospects,” said IMF spokesman, Thomas Dawson.
The country’s economy fell apart in 2001, and the government froze bank accounts which caused widespread rioting and ultimately caused the country’s then-president to resign.
According to a Reuters article,
“After three years in default with its private foreign creditors, Argentina is offering to swap $102.6 billion of bad debt held worldwide for up to $41.8 billion in new bonds.
But Italy has complained the debt swap is ‘very miserly and very poor’.
In Rome, Italian Economy Minister Domenico Siniscalco said on Thursday that, if creditors did not accept the offer, it would ‘open an unprecedented scenario with international lawsuits’.”
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