BUENOS AIRES, June 18 — Argentina’s government will not cede further ground in debt restructuring negotiations with creditors after improving its offer to around 50 cents on the dollar with an additional export-linked sweetener, an official source said on Wednesday.
The South American grains producer is in the tense final stretch of talks to revamp around US$65 billion (RM278.2 billion) in foreign debt that has become unsustainable. The two sides have been inching closer, though both have said work remains to be done.
“The government believes that the creditors’ proposal has an unsustainable cost for Argentines,” said the person, who asked not to be identified as the talks were private. Various creditor groups have made counter-proposals during the negotiations.
“The president is not going to cede any further,” he said, adding that the offer presented by Argentina currently was worth 50 cents on the dollar and included warrants linked to the country’s farm-driven exports.
Argentina’s government on Wednesday opted not to renew confidentiality agreements signed with creditors that have been used to allow talks to progress. A deadline for a deal is penciled in for June 19, though it has been repeatedly extended. — Reuters
