Buenos Aires renews creditor negotiations in the “last round” of pushing for $7 billion in debt deals Reuters

Walter Bianchi

Buenos Aires (Reuters)-The Argentine province of Buenos Aires has extended the deadline for a $7 billion debt restructuring agreement and agreed to renew with creditors after more than a year of intense negotiations Conduct the “last round” of negotiations.

The province is the richest country in the South American country. The province stated that after passing the previous deadline without reaching an agreement last week, it will postpone the long-delayed deadline to July 23 to facilitate its foreign countries. The creditors responded to their proposal.

The local government added in a statement that some of its bondholders, including important members of the ad hoc creditor committee, have agreed to sign a non-disclosure agreement (NDA) for negotiations.

“The province has extended the deadline for inviting dialogue with such bondholders,” it said.

A government source close to the negotiations said that the province has launched a “final round” of negotiations with creditors to reach an “agreement to grant debt sustainability in the short, medium and long term before the formal revision of the invitation.”

The person added that the formal talks took place after a period of “tensed dialogue” between the two sides, and cited the provincial Finance Minister Pablo Lopez’s actions to help the two parties formally return to the negotiating table in recent days.

“This will help reach a final solution,” the person said.

While the central government reached a deal with other provinces, the tortuous negotiations triggered tensions with creditors, who filed a lawsuit against the provincial government earlier this year for what it called a “continuous breach of contract”.