Argentina

Debt capital markets bankers expect the Argentine government to mandate dealer-managers on its mega distressed debt exchange by early next week, as they plan for a complex transaction in which size could make up for low fees.

The IMF’s call for a “definitive debt operation yielding a meaningful contribution from private creditors” in Argentina only triggered a slight fall in sovereign bond prices as investors said there was little new in the statement. But fears are rising that the country is facing a lengthy restructuring process.

Privately held Argentine power generator Stoneway Capital Corporation has asked bondholders to postpone an amortisation payment on its senior secured bonds as delays from government energy distributor Cammesa begin to bite.

The International Monetary Fund maintained that relations with the Argentine government were “constructive” after a staff mission met economy minister Martín Guzmán on Friday afternoon.

Argentina appeared to adopt a firmer posture on debt restructuring negotiations this week, as it postponed repaying a domestic bond held mostly by foreigners. Economy minister Martín Guzmán told the country's Congress that he would “not let foreign investors set the tone for macroeconomic policy”.

Argentina's plans to restructure $67bn of debt in under two months may look naive to some but the ambition the government has so far demonstrated point towards a good outcome.

Argentina’s economy ministry argued that it was acting with “simple” logic after deciding to include a domestic law dual currency bond owned mostly by foreigners in its external debt restructuring on Tuesday afternoon.

Argentina's plans to restructure $67bn of debt in under two month may look naive to some but the ambition and good communication the government has so far demonstrated point towards a good outcome.

Axel Kicillof, the governor of the Province of Buenos Aires, who has an antagonistic relationship with bond investors, was forced into a volte-face on forgoing a debt payment, as Argentina’s new government seeks to maintain a good rapport with markets ahead of restructuring negotiations.

The Province of Buenos Aires agreed to make an overdue bond payment on Tuesday afternoon to dodge default by just one day, as analysts said Argentina had to avoid creditor conflict to meet a tight deadline to restructure its sovereign debt.

A group of Province of Buenos Aires creditors immediately backed the issuer after it significantly sweetened the terms on offer to bondholders in an attempt to dodge a default that could be just two days away.

The Province of Buenos Aires has given itself an extra working day to track down bondholders and persuade them to accept a delay in an amortisation payment as it seeks to avoid a hard default on its debt.