Buenos Aires (Reuters) – Argentina demands far-reaching concessions from its foreign creditors.
Finance minister Martin Guzman released details of the planned debt restructuring plan on Thursday, which is to be officially presented to the creditors on Friday. Accordingly, interest payments are to be completely suspended in the years 2020 to 2022. Overall, the interest rate on the debt is to be reduced to 2.33 percent. This would save Argentina just under $ 40 billion, which is 62 percent of what the country would have had to pay in interest. In addition, there will be a haircut of $ 3.6 billion. This corresponds to 5.4 percent of the total.
The International Monetary Fund (IMF) has recently described Argentina’s debt burden as unsustainable and has said there should be a “significant contribution from private creditors”.
Argentina went bankrupt in 2001. In 2015 the government in Buenos Aires managed to finance itself again on the market. To date, the once richest country in South America has not fully recovered from the aftermath of the crisis.