Pimco accepts renewal of government bond and postponement of $9 billion debt

The Pacific Investment Management Co (Pimco) fund accepted the Government's offer to renew its holdings in the Monetary Policy Bond (BoPoMo), and actively intervened on Friday in the tender of the Letter of the Treasury in pesos (Letes), for which ARG $19 billion ($315 million) was obtained at a final rate of 44.7%. Representatives of Pimco, held meetings with government officials that allowed Argentina to postpone until August 31 the payment of $ 9 billion that expired on Friday.

Fernández free to use $4.6 billion of BCRA reserves to pay debt

Lawmakers handed President Alberto Fernández extraordinary powers to renegotiate debt terms with creditors at a time the new government seeks to renegotiate about $100 billion owed to private creditors and the International Monetary Fund. The emergency bill authorises Fernández’s administration to take as much as US$4.6 billion in Central Bank reserves to pay down debt denominated in dollars.

Senate approved emergency economic package

Argentina’s Senate gave final legislative approval to an emergency economic reform package. Argentina faced a deep economic crisis with inflation of more than 50% and an economy expected to shrink for a third straight year in 2020. The Government of Alberto Fernandez aims to have restructuring talks on about $100 billion in debt owed to bondholders and the International Monetary Fund.