By Cassandra Garrison and Rodrigo Campos
BUENOS AIRES (Reuters) - Argentina's main creditors said on Monday their latest debt restructuring proposal has support from investors holding more than half the country's foreign debt, bolstering their base for countering the government's most recent offer.
Financial institutions representing 60% of outstanding exchange bonds and 51% of outstanding global bonds have pledged support for a joint proposal submitted to the government by three main creditor groups on July 20, according to a letter by the creditors to Economy Minister Martin Guzman seen by Reuters.
The letter was signed by about 30 investment funds, including those part of the Ad Hoc Bondholder group, the Exchange Bondholder group and the Argentina Creditor Committee.
BlueBay Asset Management LLP, Fidelity Management & Research Co. and Amundi Asset Management were among the other funds who signed.
Argentina is facing a standoff with bondholders over the restructuring of about $65 billion in foreign debt after its creditor groups joined forces to reject the government's proposal earlier in July.
"We are confident that a consensual resolution will provide a path towards even greater and more sustained investment in Argentina's growth sectors," the letter said.
A spokesman for Argentina's ministry of economy did not immediately respond to a request for comment.
The South American country has insisted it will not budge from its "final offer" but signaled it would be willing to negotiate on the fine print around the deal.
The two sides have wrangled over collective action clauses (CACs) that determine the requirements for any future changes made to the bond agreements.
Argentina is pushing for enhanced CACs, which allow borrowers to bundle together multiple bonds, making it even harder for minority hold-outs pushing for a better deal to disrupt the process. Enhanced CACs require a single threshold for approval, generally set at 75%.