Economy Minister Martín Guzmán held in New York what he called "strategic meetings" with bank executives and investment funds that hold Argentine bonds under foreign law. Despite the total official secrecy, it was reported that representatives of BlackRock, Templeton, Pimco, Gramercy, Greylock, Fidelity, Morgan Stanley, Bank of American, Citibank and JP Morgan attended the meeting. Alberto Fernández' government is planning to determine next week the final structure of the sovereign debt restructuring offer.
Argentina Minister of Economy Martín Guzmán, meets today in New York with representatives of banks and investment funds holding sovereign bonds regulated under foreign law. The meeting follows another held yesterday in Washington with the Deputy Director of the Western Hemisphere Department of the International Monetary Fund (IMF), Julie Kozack, and the head of the Argentine mission, the Venezuelan Luis Cubeddu, both members of the technical mission that visited Buenos Aires last week.
The International Monetary Fund won’t offer Argentina a haircut on its $44 billion loan, according to Managing Director Kristalina Georgieva. “Our legal construct is such that we cannot do measures that may be possible for others without this big global responsibility,” she said. An IMF technical mission is in Buenos Aires through Feb. 19 to meet with Argentina officials and assess the country’s debt sustainability. Talks with the IMF will be key for an even bigger negotiation with bondholders to avoid a default.
Argentina’s economy minister, Martín Guzmán, warned bondholders to brace for significant losses as the country restructures its debt "focused on sustainability" amid an economic crisis. His comments at a congressional hearing on Wednesday set the tone for tense negotiations with sovereign debt bondholders, among them major investment funds such as BlackRock and Fidelity. He also said the government won't reduce its fiscal deficit in 2020.
The Government of the province of Buenos Aires proposed today to pay 30% of the bond capital due on January 26 ($ 75 million) and defer the remaining 70% to May 1. Bondholders will also receive the interest corresponding to that postponed capital, if at least 75% of them accept the terms before this Tuesday.
Veteran restructuring lawyer Dennis Hranitzky is building up an Argentina bondholder group of about 20 funds focused on 2005 and 2010 debt exchanges notes. Hranitzky, who helped hedge fund billionaire Paul Singer win a 15-year bond battle against Argentina, joined Quinn Emanuel Urquhart & Sullivan last week. Argentina’s gross debt load stands at $332 billion, including loans from the IMF.