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Bondholders meet with Argentina's economy minister as restructuring deadline looms

Wed, 04th Mar 2020 19:20

By Cassandra Garrison

BUENOS AIRES, March 4 (Reuters) - Argentina's minister of
economy met with representatives of several major creditors,
including asset management firm Pimco, a company executive and a
ministry source said on Wednesday, as separate talks continued
with the International Monetary Fund.

"We accepted an invitation to visit the ministry to discuss
a range of issues (with Economy Minister Martin Guzman) on a
one-to-one basis," said Pramol Dhawan, head of the emerging
markets portfolio management team at Pimco, a major holder of
Argentine debt. Pimco is a unit of Allianz SE.

"We look forward to continuing the discussions with them
over the coming weeks as we assess the relative merits of
different creditor committees, although we have so far abstained
from involvement in any such committee."

Guzman also held talks with officials from Gramercy Funds
Management, Fintech, BlackRock Inc and Ashmore Group
, the ministry source said.

The government of Latin America's No. 3 economy is gearing
up for the renegotiation of about $100 billion in sovereign debt
amid an economic crisis that has sapped the peso currency and
sent bonds tumbling.

Asked if Guzman had met with the funds, the source said,
"Yes" without offering further details. "I don't know if they
are still in Buenos Aires," the source added.

Center-left President Alberto Fernandez has said the nation
cannot pay until it revives its stalled economy.

Guzman warned in February that bondholders were likely to
find negotiations "frustrating," spurring speculation among
investors that they could be in for haircuts on debt.

The government said on Sunday that it hired Lazard
as financial adviser and Bank of America and HSBC
as debt placement agents for the debt restructuring
process it hopes to close by a deadline of March 31.
Meanwhile, a technical team from the International Monetary
Fund, which in 2018 agreed to a $57-billion financing program
with Argentina, is also in Buenos Aires this week.

An IMF source said on Tuesday that meetings with the
government had been "very productive" and that the team's
mission was aimed at "deepening the understanding of the
authorities' economic program, including their debt strategy."

Also on Tuesday, the Economy Ministry said it was calling on
holders of external public bonds to report their holdings before
March 16 so it could begin facilitating communication about the
upcoming debt restructuring.

(Reporting by Cassandra Garrison; additional reporting by
Rodrigo Campos in New York; Editing by Cynthia Osterman)

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Copyright 2024 Alliance News Ltd. All Rights Reserved.

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