Argentina´s Chubut Province strikes debt deal with creditors
Reuters
Published Nov 14, 2020 05:55PM ET
By Lucila Sigal
BUENOS AIRES (Reuters) - 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.
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."
Argentina's provinces from Buenos Aires to wine region Mendoza are readying to revamp a combined $13 billion in debt.
The South American country's government restructured almost $110 billion in dollar debt earlier this year, dragging itself out of default, a major victory after a standoff with creditors had threatened to scupper a deal.
Get The News You Want
Written By: Reuters
Trading in financial instruments and/or cryptocurrencies involves high risks including the risk of losing some, or all, of your investment amount, and may not be suitable for all investors. Prices of cryptocurrencies are extremely volatile and may be affected by external factors such as financial, regulatory or political events. Trading on margin increases the financial risks.
Before deciding to trade in financial instrument or cryptocurrencies you should be fully informed of the risks and costs associated with trading the financial markets, carefully consider your investment objectives, level of experience, and risk appetite, and seek professional advice where needed.
Fusion Media would like to remind you that the data contained in this website is not necessarily real-time nor accurate. The data and prices on the website are not necessarily provided by any market or exchange, but may be provided by market makers, and so prices may not be accurate and may differ from the actual price at any given market, meaning prices are indicative and not appropriate for trading purposes. Fusion Media and any provider of the data contained in this website will not accept liability for any loss or damage as a result of your trading, or your reliance on the information contained within this website.
It is prohibited to use, store, reproduce, display, modify, transmit or distribute the data contained in this website without the explicit prior written permission of Fusion Media and/or the data provider. All intellectual property rights are reserved by the providers and/or the exchange providing the data contained in this website.
Fusion Media may be compensated by the advertisers that appear on the website, based on your interaction with the advertisements or advertisers.