Press conference regarding debt restructuring

ARGENTINA - In Brief 29 Feb 2016 by Esteban Fernández Medrano
Just in time ahead of tomorrow’s opening session of the Congress, Finance Minister Alfonso Prat-Gay and Finance Secretary Luis Caputo will give a press conference today to announce the agreement reached with Holdouts. The conference will happen today at 6pm Buenos Aires time (4pm NYC or 9pm London). In line with previous expectations (expressed in recent monthly report) and following the announcement made earlier today by Special Master Pollack, the main points of the announcement should be the following: 1) The pre-agreement reached 85% of Holdouts. 2) On average, the offer represents a haircut of 25% regarding the obtained judicial claim. 3) Agreed payments would in the order of US$ 4.65bn 4) The deadline to implement such payments, that is to press the agreement through the Congress, is noon of April 14th. Although this sort of announcement was expected and the agreement does not cover 100% of holdouts, it is still very good news for Argentine assets. In particular given the delicate state of the monetary stance (see out February Monthly Report). This news, together with the previous announcement from the Court of Appeal, in the sense that it would not centralize the judicial battle, clears the way for Griesa’s stay, allowing Argentina to tap capital markets. It will be interesting to see, whether Griesa dares adjusting its previous ruling, to incorporate the proposition made today. That is whether he dares, as stated in several opportunities, to apply some sort of de-facto collective action clause on the remaining 15% of the Holdouts.

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