💎 Fed’s first rate cut since 2020 set to trigger market. Find undervalued gems with Fair ValueSee Undervalued Stocks

Finance group urges 'early' talks between Argentina's new government, creditors

Published 12/09/2019, 04:10 PM
Updated 12/09/2019, 04:16 PM
Finance group urges 'early' talks between Argentina's new government, creditors

NEW YORK (Reuters) - Argentina's incoming Economy Minister Martin Guzman should meet as soon as possible with the country's private sector creditors amid fraught talks over restructuring, the head of a global financial service group said on Monday.

Institute of International Finance CEO Timothy Adams wrote in a letter seen by Reuters that early negotiations were "particularly important in facilitating an effective voluntary debt restructuring agreement."

The IIF, which has 450 members globally, represents many but not all of Argentina's bondholders.

Argentina's new government, which takes office on Tuesday, is bracing for negotiations with creditors including the International Monetary Fund (IMF) to restructure around $100 billion in debt after a sharp market crash earlier this year.

Guzman, a young economist with close ties to American economist Joseph Stiglitz, has extensive academic background in debt restructuring but little policy-making experience.

Argentina's century bond traded above 42 cents for the first time in two weeks on Monday while its January 2023 issue rose above 43 cents for the first time since Oct. 25, according to MarketAxess data.

The incoming cabinet, including Guzman, was announced by President-elect Alberto Fernandez late on Friday.

Argentina's dollar-denominated debt tumbled in price after Fernandez pummeled center-right incumbent President Mauricio Macri in an August election. Fernandez was officially elected in late October.

Latest comments

Risk Disclosure: Trading in financial instruments and/or cryptocurrencies involves high risks including the risk of losing some, or all, of your investment amount, and may not be suitable for all investors. Prices of cryptocurrencies are extremely volatile and may be affected by external factors such as financial, regulatory or political events. Trading on margin increases the financial risks.
Before deciding to trade in financial instrument or cryptocurrencies you should be fully informed of the risks and costs associated with trading the financial markets, carefully consider your investment objectives, level of experience, and risk appetite, and seek professional advice where needed.
Fusion Media would like to remind you that the data contained in this website is not necessarily real-time nor accurate. The data and prices on the website are not necessarily provided by any market or exchange, but may be provided by market makers, and so prices may not be accurate and may differ from the actual price at any given market, meaning prices are indicative and not appropriate for trading purposes. Fusion Media and any provider of the data contained in this website will not accept liability for any loss or damage as a result of your trading, or your reliance on the information contained within this website.
It is prohibited to use, store, reproduce, display, modify, transmit or distribute the data contained in this website without the explicit prior written permission of Fusion Media and/or the data provider. All intellectual property rights are reserved by the providers and/or the exchange providing the data contained in this website.
Fusion Media may be compensated by the advertisers that appear on the website, based on your interaction with the advertisements or advertisers.
© 2007-2024 - Fusion Media Limited. All Rights Reserved.