Buenos Aires extends debt maturity again after creditors’ warning

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BUENOS AIRES, Feb.1 (Reuters) – Argentina’s province of Buenos Aires extends creditors’ deadline until the end of February to accept a $ 7 billion debt restructuring offer, after bondholders warned that they could demand repayment in the absence of progress in the negotiations.

The provincial government said in a statement on Monday that the deadline for accepting the offer, which had already been pushed back by bondholders, would be pushed back to February 26 after the previous deadline expired last Friday.

A large group of bondholders said last week that they were concerned about “a continued lack of progress in resolving the province’s long-standing default” and that it may be forced to speed up the process. payment of some of the obligations or resort to the legal application of the surety contracts.

The group, which says it holds about half of Buenos Aires’ external bond debt, criticized the provincial government for making “no effort to bridge the gap” between the two parties despite the repeated extension of the offer deadline. .

The debt overhaul of Buenos Aires, Argentina’s richest province, comes after the sovereign government restructured some $ 110 billion in foreign currency debt last year amid the bitter economic crisis. Other provinces are making similar changes. (Report by Adam Jourdan and Walter Bianchi Editing by Chizu Nomiyama)

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