After nearly a year of extending the deadline of its debt restructuring proposal, fresh documents published by Argentina’s largest province show talks remain stuck, Bloomberg News reported. The province of Buenos Aires presented the details of a proposal shown to one of its largest creditors, GoldenTree Asset Management, under a nondisclosure agreement which has since expired, according to a statement posted online.
Argentina’s state-owned oil producer looks set to avoid a hard default after creditors signed on to swap some of their bonds due next month and the central bank agreed to provide the company with the dollars it needs to pay back the remainder, Bloomberg News reported. YPF SA bondholders will exchange almost 60% of the $413 million note due in March, according to a company statement.
YPF SA, Argentina’s state-run oil driller and refiner, looks set to avoid a costly default next month after it won support for a debt swap from a large creditor group, Bloomberg News reported. The so-called Ad Hoc Bondholder Group, which holds 45% of YPF’s 2021 notes, expressed support for the exchange after the company increased its cash sweetener over the weekend, according to a statement. Bonds due in 2021 rose 4.5 cents to 95 cents on the dollar as of 10:40 am in New York, the highest since Jan. 8. The company’s shares climbed as much as 6%.
In the 99 years since it was founded to pump the oil fields of Patagonia, Argentine energy driller YPF SA has been whipsawed by countless booms and busts. If global oil markets weren’t collapsing, it seemed, then Argentina was mired in a debt crisis that was wreaking havoc on the whole nation’s finances. Never, though, had the company been pushed into a large-scale default of any kind, Bloomberg News reported. Until, it would appear, now. Word of this came in an odd way: Officials at state-run YPF sent a press release laying out a plan to saddle creditors with losses in a debt exchange.
Shunned in global financial markets, Argentina is seeking about US$5 billion for next year from multilateral organisations other than the International Monetary Fund as it negotiates a larger refinancing programme with the Washington-based lender, according to three people familiar with the plans, the Buenos Aires Times reported. Alberto Fernández’s administration is looking to institutions including the Inter-American Development Bank and the World Bank, said the people, who asked not to be named because discussions are private.