By Jorgelina do Rosario
(Bloomberg) -- Argentina is considering paying coupons
sooner than previously announced, as it aims to close a gap with
creditors in debt restructuring talks, according to people with
knowledge of the matter.
Government officials weigh offering making interest
payments as early as January and July 2021, said one of the
people, who asked not to be named because the talks are private.
A prior government offer proposed making interest payments
starting in May and November of 2021.
The change would represent an improvement in the net
present value of the deal for bondholders, while not affecting
the country’s annual gross financial needs, said one of the
people. That means the proposal could fit with Argentina’s aim
of meeting certain debt sustainability guidelines. Argentine
officials are also reviewing how to treat accrued interest, two
of the people said.
The proposal could help bridge a divide between the
government and creditors at a time where debt talks are not
moving at the same pace with all the bondholder groups.
Argentina’s debt talks have stalled since the country and its
creditors were unable to come to terms on key differences over
how to restructure $65 billion in overseas bonds. The country,
which entered the ninth default of its history in May, extended
the deadline for its talks for a fifth time until July 24.
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