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The Argentine Authorities Will Not Accept The New Creditors' Plan For Debt Restructuring

The Argentine Authorities Will Not Accept The New Creditors' Plan For Debt Restructuring

The authorities of Argentina will not accept the new offer of the main creditors to restructure the national debt, as this would lead to greater risks for the country, said economy Minister Martin Guzman.

Earlier on Monday, three main groups of holders of Argentina's debt rejected the government's proposals for its restructuring, promising to put forward their own ideas.

According to Guzman, this decision of the Ad Hoc, FAC, and Exchange groups was expected, they had previously expressed disagreement with the policy of the Argentine authorities. "We hope that this group will use this time (until August 4-ed.) to think. They knew they were taking the risk. What we are asking them to do means that they will simply earn less," the Minister said in an interview with TN.

"What they are asking for implies more unemployment and suffering for people, it means having to adjust pensions, which is something we are not going to do," Guzman added.

The Minister stressed that Argentina does not want to assume obligations that it cannot fulfill, and noted that the government's restructuring proposal is final.

Argentina did not pay interest on the $503 million bonds on May 22. it was already in the ninth default for the country, which has not yet been legally declared. The authorities offered creditors a plan that provides for no payments on the debt for three years, a 62% reduction in the amount of interest paid, as well as writing off part of the debt itself.