Argentina delays payment on bond principal

BUENOS AIRES, Argentina — Argentina announced Tuesday that it will delay paying principal on a peso-denominated bond that had been due this week while it works on restructuring an overall debt it says is unpayable at a time of economic hardship.

The announcement by the Economy Ministry comes ahead of'debt restructuring talks with a mission from the International Monetary Fund.

The ministry said payment of principal on the AF20 bond, which was issued in July 2018, will be put off until Sept. 30 "to be able to count on more time to be able to restructure this bond in a form consistent with the rest of the external debt restructuring. The payment had been due on Thursday.

It said it will continue to pay interest.

The center-left government of new President Alberto Fernández is attempting to restructure a foreign debt of some $100 billion, roughly half of which is owed to the IMF.

Economy Minister Martín Guzmán has warned that Argentina needs “a sustainable solution” to paying its debt.

“Today the situation is critical, the debt burden cannot be sustained," he said last month.

Argentina periodically faces financial crises and liquidity problems that have led it to refinance its debt. At the end of 2001, it declared a record default on just over $100 billion in debt during the worst economic crisis in its history. It is currently dealing with a contracting economy, high inflation and a weakened currency.

The bill would declare the sustainability of external public debt a “priority” and authorize the government to carry out a "restructuring of interest maturity services and capital amortization of public securities issued under foreign law." It would give the executive branch power to determine the nominal amounts.

Must Read

'American Crime Story' writers focusing on Hurricane Katrina

Aug 10, 2016

An executive producer behind 'American Crime Story,' the anthology series for FX, says they're taking 'great care' with casting of the season which will focus on Hurricane Katrina

Hearing on Johnny Depp domestic violence allegations delayed

Aug 9, 2016

A judge is briefly delaying a restraining order hearing involving Johnny Depp and his estranged wife because it is expected to span several days; depositions of both actors set

RNC hires strategists to help woo African-American voters

Aug 9, 2016

The Republican National Committee has hired three new strategists to help increase its outreach to black voters, including Ashley D. Bell as its new senior strategist and national director of African-American engagement

People also read these

10 Things to Know for Thursday

Aug 11, 2016

Among 10 Things to Know: Criticism may be slowing Trump train; 'Grim Sleeper' sent to death row; versatile ESPN sportscaster dies at 61

Florida officials go into damage-control mode over Zika

Aug 6, 2016

Worried about Florida's all-important tourism industry, state officials are going into damage-control mode over Zika

4 months after Japan earthquake, final victim may be found

Aug 10, 2016

Nearly four months later, the final victim of two deadly earthquakes in southern Japan may have been found

Weather, 20 December
Houston Weather
+7

High: +11° Low: -2°

Humidity: 83%

Wind: NNE - 7 KPH

Canberra Weather
+27

High: +27° Low: +17°

Humidity: 87%

Wind: W - 20 KPH

Roissy-en-France Weather
+6

High: +6° Low: -5°

Humidity: 87%

Wind: ENE - 7 KPH

Florence Weather
+9

High: +9° Low: +6°

Humidity: 97%

Wind: ENE - 17 KPH

Parga Weather
+7

High: +16° Low: +4°

Humidity: 100%

Wind: SE - 25 KPH