The Dubai Offer
The first official exchange offer — the “Dubai offer,” as it
was presented in the IMF-World Bank Annual Meeting
in Dubai — was done in 2003. The top priority for the
design of the offer was to ensure the continuation of the
recovery of debt sustainability. Argentina promised to run
a primary surplus of three percent of GDP beginning in
2004. In the proposed scheme, debt could only be served
using the primary surplus — but not issuing new debt.
Finally, preferred creditors would be paid in full. This
would leave a residual of one percent of GDP to repay
private creditors, implying a writedown of 73 percent on
the eligible debt of $81.84 billion at a post-crisis interest
rate of five percent, and no recognition of due interest.13
The country would issue three exchange bonds: a discount
bond with 75 percent discount on the principal and an
increasing interest rate in the range of one to five percent,
and a maturity of eight to 32 years; a par bond with no
discount on the principal, a fixed interest rate in the range
of 0.5 to 1.5 percent, and a maturity of 20 to 42 years; and a
quasi-par bond with a 30 percent discount on the principal,
a fixed interest rate in the range of one to two percent, and
a maturity of eight to 32 years. Creditors rejected the offer.
The Buenos Aires Offer
The next round was the “Buenos Aires offer,” proposed
in January 2005. The offer again included a par bond
with no writedown of principal, a maturity of 35 years
and a reduced annual interest rate of 1.33 percent over
the first five years, which would then increase over time
up to 5.25* percent; a discount bond with a writedown
of 66.3* percent on the principal, a maturity of 30 years
and an annual interest rate of 8.25 percent; and a quasi-
par bond for local bondholders, issued in Argentine
pesos adjusted by a proxy of consumer price index (CPI)
inflation, with a maturity of 42 years and a fixed annual
interest rate of 3.31 percent. In addition, attached to each
bond there was a strip of GDP-linked warrants, whose
characteristics will be described below
Nel 2003-2005 quale fu la prima offerta e quella finale?
Mi rispondo da solo...fu migliorata un bel po'. (Da notare che quanto copiato é una ricerca dello stesso M. Guzman)
