Congress approves the reopening of the Argentine debt exchange
The local financial press has published that the Argentine Congress has approved the reopening of the Argentine defaulted debt exchange.
The law provides for a new exchange offer of the defaulted sovereign bonds that were not tendered in the exchange offers launched in 2005 and 2010 (holdouts).
The law does not provide a specific term by which the exchange must be completed but, instead, leaves the exchange term open until Congress declares that it is closed. In this regard, the Ministry of Economy and Public Finance should report to Congress the progress of the debt swap process on a quarterly basis.
In addition, the law authorises the aforementioned Ministry to provide the details of the offer and guidelines to implement this new exchange.
The law will be effective once it is published in the Official Gazette.
There is no immediate impact for investors. If this becomes the subject of a corporate action event, local custodians will release detailed information through respective corporate action messages.
We have proactively initiated discussions with our local custodians to continue monitoring government resolutions and we will provide further information as soon as it becomes available.
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