The governor of the province of Buenos Aires, Axel Kicillof confirmed that he will not be able to pay $ 275 million of the Buenos Aires 2021 bond that expires on January 26. In an Argentine newspapers publication this morning, he announced that he will seek an agreement with creditors to postpone payment until May 1, 2020.
Buenos Aires Province’s plan to negotiate with creditors debt payment due this month has torpedoed one of the world’s best bond rallies. The province’s $500-million of notes due in January 2021 tumbled 5.3% Wednesday to $0.64, their worst day in more than four months. The securities had returned 54% from the end of August through Tuesday, putting them among the top performers in emerging markets.