BUENOS AIRES (Reuters) - The government of Argentina’s Chubut province will seek to delay payments on debt after Buenos Aires province, Argentina’s largest, also asked its creditors for extensions as the country grapples with a debt crisis, local media reported on Friday.
The provincial government of Chubut, located in the Patagonian region, plans to submit a restructuring proposal to its local legislature that aims to defer debt payments over the next four years and reduce the size of the district’s public administration, the reports said.
Chubut’s total public debt amounts to about $855 million, 85% of which is denominated in U.S. dollars and backed by oil royalties, Chubut Economy Minister Oscar Antonena told state news agency Telam.
The debt deferment plan addresses an “acute situation in finance that forces us to propose a restructuring,” he said.