Argentina improves debt exchange offer, with VPN at 10%. IMF calls for collaboration with creditors

This week, the finance minister amended the U.S. Securities and Exchange Commission. (SEC) the original offer he had made to bondholders with eligible securities up to US$65 billion. Guzmán’s proposal – the fourth – involves a sharp increase in net present value (NPV) at a discount rate of 10% (up to 53 cents on the dollar), respect the 2005 and 2016 indentures (original prospectuses), establishes a minimum floor of 50% participation, and recognizes past-due interest, among other improvements. However, the offer was rejected this afternoon by the two hardest negotiating creditors’ committees (AdHoc and Exchange). The IMF called for collaboration from private creditors.

Source: La Nación