The International Monetary Fund will send another mission to Buenos Aires on Monday to continue debt strategy talks and discuss “next steps,” an IMF spokesman said on Thursday, as Argentina seeks to renegotiate its $57 billion financing package. Julie Kozack, the IMF deputy director for the Western Hemisphere, and Luis Cubeddu, head of the IMF’s mission in Argentina, will lead the team. In their previous visit just over a week ago they said Argentina's sovereign debt was "unsustainable".
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 Economy Minister Martín Guzmán and IMF Managing Director Kristalina Georgieva agreed to start Article IV consultations, during conversations on the sidelines of the G20 meeting in Riyadh, Saudi Arabia on Saturday. The Article IV review might pave the way to changing the terms of the IMF $56bn stand-by loan for a new program. Guzmán is travelling to Washington today to hold further meetings with IMF staff.
Argentine bond prices fell 1.3% on Thursday after an IMF technical mission essentially gave the government a green light to restructure about $100 billion in bonds and loans, including $44 billion owed to the IMF. Argentine bond prices are down 4.8% so far this year. Country risk spreads 11EMJ stood 82 basis points wider at 2,117 over safe-haven U.S. Treasury paper, indicating an increase in the perceived likelihood of default.
Argentina’s debt load is unsustainable, the International Monetary Fund said after completing a week of meetings in the country, paving the way for the government to ask private bondholders to take on losses as it prepares to renegotiate its obligations. A “meaningful contribution” will be necessary from private bondholders to restore the country’s debt sustainability, the IMF said at the end of its first technical mission in Buenos Aires under Alberto Fernandez’s presidency.
Money managers including BlackRock Inc. and Fidelity Investments launched a committee with White & Case LLP as legal adviser focused on Argentina's sovereign debt. This can become one of the most powerful creditor groups since BlackRock and Fidelity both rank among the six biggest reported holders of the country’s sovereign notes.
Monarch Alternative Capital LP is spearheading a group of about 20 hedge funds advised by Dennis Hranitzky at law firm Quinn Emanuel Urquhart & Sullivan, which is getting organised ahead of debt restructuring talks with Argentina. The group is focused on notes that were part of the nation’s 2005 and 2010 debt exchanges which give a relatively small number of investors the power to veto any accord they didn’t like.
A team of experts from the International Monetary Fund (IMF), due to arrive in Argentina this Wednesday for crucial talks with the government, have extended their visit by a further four days. The team will be headed by Julie Kozack, the IMF's deputy director of the Fund's Western Hemisphere Department, and Luis Cubeddu, the IMF’s mission chief for Argentina, and will remain in the Argentine capital until February 19 "to permit dialogue and deeper work on [debt] issues," a Fund spokesperson said.
Argentina's leading agroexporter Vicentin has requested the opening of bankruptcy proceedings before the Commercial Justice of the province of Santa Fe. Since the beginning of December, when the company declared default with $1.35 billion debts, Vicentin is holding back, and expects to reactivate two industrial plants, but there is fear for the future of 800 workers and 2000 producers.
Argentina’s Senate voted unanimously in favour of a bill that grants power to the government of President Alberto Fernández to handle a massive debt restructuring of bonds issued in foreign currency. Buenos Aires is grappling with ca. $100 billion in sovereign debt it is seeking to restructure with its creditors, including the IMF. An IMF technical mission is expected to arrive in Argentina on Feb. 12 to continue talks.