By Walter Bianchi
BUENOS AIRES (Reuters) – Argentina’s Buenos Aires province has extended the deadline for a $ 7 billion debt restructuring deal and agreed to renew a “last round” of talks with creditors after more than a year of tense negotiations.
The province, the richest country in South America, said it would postpone the long-delayed deadline until July 23 for its foreign creditors to respond to its proposals after the previous cutoff passed last week without a deal.
The local government added in a statement that some of its bondholders, including members of the top Ad Hoc creditor committee, had agreed to once again sign confidentiality agreements (NDAs) to continue the talks.
“The province extended the term of the invitation to enter into talks with these bondholders,” he said.
A government source close to the talks said the province had opened a “last round” of negotiations with creditors to reach an “agreement that provides debt sustainability in the short, medium and long term, before formally amending the invitation. “.
The person added that the formal talks came after a period of “tense talks” between the two parties and cited actions by the provincial finance minister, Pablo López, in recent days that helped bring the two parties back to the table formally. .
“This would allow a definitive solution to be reached,” the person said.
The tortuous talks, while the national government and other provinces have reached agreements, have led to tensions with creditors, who earlier this year filed a lawsuit against what they called a “continuing default” by the provincial government.
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