Argentine Senate approves law to renegotiate external debt
The law authorizes the Minister of Economy to renegotiate the conditions of the payment of the foreign debt taken during the administration of former president Mauricio Macri
February 06, 2020
On February 5, the Argentine Senate unanimously approved the bill of the “Restoration of Sustainability of the External Public Debt”, presented by the left-wing government of President Alberto Fernández. The initiative was approved last week in the Chamber of Deputies, with only two against it. The said law authorizes the Minister of Economy, Martín Guzmán, to renegotiate the conditions of payment of the huge foreign debt taken out by Argentina during the administration of former right-wing president Mauricio Macri.
The law gives power to restructure the debt contracted with the International Monetary Fund (IMF) as well as with other banking organizations. It also gives Guzmán the freedom to determine the terms and procedures for issuing new bonds while choosing which financial institutions and advisors to act as process coordinators or as placement agents.
According to the data from the Ministry of Finance, Argentina’s gross debt amounts to some 323,127 million dollars, which represents 95% of its gross domestic product (GDP).