BUENOS AIRES, May 18 (Reuters) - Argentina is weighing new counteroffers from its creditors as it races to strike a deal to restructure about $65 billion in foreign debt before Friday, when a grace period for paying interest on three dollar-denominated bonds expires.
The counteroffers from leading creditor groups, announced by Argentina’s government late Friday night, call for a shorter one-year grace period on payments and higher average interest rates than the government’s initial proposal, according to local media outlet Infobae.
Argentina, which is at risk of default on the bonds, proposed last month a tough restructuring that included a three-year payment halt, maturities pushed back until the next decade and a 62% reduction in coupon payments, an offer rejected by the majority of its creditors.
A joint counteroffer by firms Greylock, Gramercy and Fintech proposed a net present value of $58 for every 100 nominal dollars of current debt, an average interest rate of 5.03%, and a 2.3% lowered valuation, or haircut, on capital.
Another separate creditor group proposal, backed by BlackRock Financial Management, implies an average interest rate of 4.44%, a net present value of $60 per $100, and capital amortization starting in 2025.
A third offer proposed by firms including Monarch and BHK Capital included no haircut on capital and an average interest rate of 4.75% with capital amortization starting in 2027. It also included a net present value of $58 dollars per $100.
A spokesman for Argentina’s Ministry of Economy did not immediately respond to a request for comment on the new counteroffers.
Economy Minister Martin Guzman said on Friday in a virtual conference that ongoing talks with creditors had been “positive” and that the government was open to considering new proposals within the framework of debt sustainability. (Reporting by Cassandra Garrison and Eliana Raszewski; Additional reporting by Marc Jones Editing by Paul Simao)