Argentina again on the brink. At a crossroads where all roads lead to an abrupt end. The gaucho prophecy” that says: “Every ten years a crisis”, seems to be fulfilled.This time it took a little longer, and it is accompanied by internal factors such as the mega-debt contracted by former President Mauricio Macri with the IMF, more inconvenient than ever before, of an apocalyptic nature: the pandemic that at the internal level has finished emptying the coffers of a State that was already reeling. The coronavirus, therefore, represents the final blow and it is possible that the country is heading for the worst crisis in its history.
Argentina, which considers itself to be in virtual default, presented a proposal to its private creditors in the middle of the month for a debt restructuring with a strong reduction in the interest on the bonds and in the amount of capital owed. The offer implies a reduction in interest of US$ 37.9 billion (62%), with a three-year grace period – without payments – until 2023. That is, a strong discount, with no payments for three years and low interest. It is difficult for any fund to agree to such terms; the country is already preparing for technical bankruptcy. In total, the Argentine nation owes more than 70 billion.
In any case, the bondholders have 20 days to respond if they accept the offer. In the short term, on April 22, Argentina faced a maturity of US$500 million of these bonds – in interest – which it is already paying in advance.A tip compared to what they are offering. The countdown has begun and the vulture funds are already hovering over their prey, smelling of carrion.