As the clock ticked past midnight on Aug. 4, Argentine negotiators knew a deal was close to break the deadlock on a $65 billion debt deal, one of the biggest ever sovereign restructurings which has tested global financial markets.
FILE PHOTO: Argentine Economy Minister Martin Guzman gestures during an interview with Reuters, in Buenos Aires, Argentina March 11, 2020. Picture taken March 11, 2020. REUTERS/Agustin Marcarian/File Photo
Talks had twisted since the start of the year in a process hindered by the coronavirus pandemic, sailing past multiple deadlines as key creditors clashed with Guzman, a 37-year-old economist with close ties to Nobel laureate Joseph Stiglitz. On Monday morning creditors held a 9 a.m. call to discuss the proposal, a second person close to the talks said. An outline of what the groups would accept was sent back on WhatsApp, a third person said, before lawyers for both sides worked on Monday afternoon to bulletproof a final statement.
“Right up until the press release was sent I was never 100% certain,” said the second person. “There was tension all the way until the end.”At times a deal had looked a distant prospect, raising fears of legal battles that Argentina’s creditors recalled only too well from a messy restructuring after a default in 2001-02 that left the country as a pariah in global markets.
“There was a personal connection which helped establish some level of trust,” said a person close to the talks. Riccardo Grassi, risk manager at creditor Mangart Capital Advisors, agreed the minister was usually calm but said he could at times become irritated. The person close to the government and with direct knowledge of the talks described Guzman as “like a Zen monk warrior.”After sweeping into power in December, Fernandez and Guzman made their first offer to creditors in April. At around 40 cents on the dollar it was an aggressive opening gambit.
United States Latest News, United States Headlines
Similar News:You can also read news stories similar to this one that we have collected from other news sources.
A Teacher’s Guide to Successful Online LearningThese important principles can help teachers forge better and stronger connections with their students.
Read more »
Ohio Gov. Mike DeWine again tests negative for coronavirusOhio Gov. Mike DeWine has again tested negative for coronavirus after initially testing positive ahead of a meeting with President Donald Trump earlier this week
Read more »
7-Eleven’s $21 Billion Deal Could Be a MarathonThe massive deal makes strategic sense but still looks pricey, particularly given the struggling state of the U.S. petroleum industry.
Read more »
At the Dior Cruise Runway Show, a Natural Beauty Look Fit For Zoom'This COVID-19 situation doesn’t change the makeup looks that we do, but it does change the mechanisms of how we apply.'
Read more »
Oprah Commissions 26 Billboards Demanding Justice For Breonna TaylorThe 26-year-old EMT was killed by police officers inside her Louisville home.
Read more »