MarketDeal24.Com – Argentinian authorities are mulling to postpone payments on up to $10 billion of dollar debt that was issued under local law until the end of 2020, the government announced via a decree on Sunday.
However, Argentina has issued $70 billion in foreign currency debt issued under international law and the decree of necessity and urgency (DNU) would not affect it as Argentina is currently in talks to restructure with creditors.
Authorities in Argentina has previously declared that it is planning to restructure $83 billion in foreign currency denominated loan under both international and local regulations as it targets to skip a sovereign debt default that would restrict its access to global financial and capital markets.
The measure to postpone payments on local-law debt could provide the South American nation with much breathing space and may enable it to make payments on foreign debt instead. Besides, if the government goes ahead with this plan then people who have bought the local debt instrument will have to resort to local courts if they want their grievances to be addressed.
The newly elected president of Argentina Alberto Fernandez and minister for economic affairs Martin Guzman has repeatedly said that their nation must be granted some additional time to revive its economy and pay back the debts later.