Argentina: Government announces the maturity extension of short and medium-term debt
Reference
On 28 August 2019, the Argentinian Ministry of Finance approved via Decree 596/2019 the following set of measures focusing on domestic short and medium government debt.
Partial maturity extension of short-term debt (LETES, LECAPS, LELINKS and LECER)
Affected holders are expected to receive:
- 15% of the corresponding payment at the original maturity date;
- 25% 90 days later;
- the remaining 60% 180 days later than the original indenture maturity date.
Each security affected by this measure will accrue interest for the extended period.
Customers holding such instruments via Clearstream are affected by these changes.
Attached below is a list of impacted securities.
Additional measures still to be implemented
For long-term maturity debt (global bonds and local law bonds), the government will propose a Law to be passed in Congress approving a voluntary maturity extension.
Foreign Law bond payments will be discussed directly with the bondholders at a later stage.
The reprofiling of the debt with the IMF is also being reviewed.
We will continue to monitor the situation and provide more information as it becomes available.
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