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Argentina avoids default; creditors accept debt adjustment

The Argentine government confirmed on Monday that 93.55% of private creditors accepted the offer to restructure a debt of 65,000 million dollars under foreign law, a percentage that allows it to avoid default.

“The offer had a massive acceptance by our creditors as a result of the dialogue process that was established in recent months,” said the Minister of Economy, Martín Guzmán, during a ceremony at the Government House.

“There was a total adherence to the exchange of 93.55% which, due to the collective action clauses, raises the percentage to 99%,” he explained.

Argentina thus clears the ghost of a new default, the third in this century, and avoids getting involved in a legal battle in foreign courts if the offer had been less accepted.

The agreement has not yet been publicized, but Guzmán announced that Argentina will save $ 37.7 billion over the next decade and that the interest rate is reduced from 7% to 3.07%.

For his part, Peronist president Alberto Fernández stressed that “we have the peace of mind that we have not betrayed the trust of the Argentines because we did things as we said we were going to do them. This time the debt will not be paid by those who have the least. ”.

The president also thanked leaders of other countries and personalities who supported Argentina in the negotiation, and mentioned in particular the Mexican Andrés Manuel López Obrador and Pope Francis.

The economic team will now focus on negotiations with the International Monetary Fund (IMF) to modify the conditions of a millionaire loan for 57,000 million dollars that it granted to the previous government of the conservative Mauricio Macri (2015-2019) during a currency crisis.

Guzmán announced that if an agreement is reached with the IMF, the Executive Branch will request the support of Congress.