Argentina’s Chubut Province Strikes Debt Deal With Creditors

Argentina’s Chubut Province said on Saturday it had struck a debt deal in principle with a majority of its creditors after a successful sovereign debt restructuring earlier this year opened the door for local governments to resolve their regional crises, Reuters reported. Chubut and its bondholders will restructure $680 million in bonds originally set to mature in 2026, exchanging them for bonds due in July 2030, the province said in a statement. The agreement, yet to be finalized, features bonds backed by provincial oil and gas royalties derived from operations throughout the southern province in the Patagonia region. The province will require the consent at least 75% of bondholders to agree to the deal in order to make it stick. The Chubut government said in a statement the agreement, if approved, would provide “significant relief in debt service during 2021, 2022 and 2023.” Read more

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