Argentina to pay almost US$1 billion in bond coupons

The country’s international reserves were at negative US$ 3.5 billion before the payment

The government announced that it will pay US$ 982 million in bond coupons to private creditors this week. 

“This way, we reaffirm once again our commitment to the payment of public debt obligations and the management of a financial strategy that allows us to provide calm and certainty to the markets,” Finance Secretary Eduardo Setti tweeted today.

The payments were announced in a context in which Argentina’s net international reserves were already at a record minimum — consulting firm Ecolatina put them at negative US$ 3.5 billion in a report published on Friday.

The government is currently going through the final stages of a renegotiation of the economic program agreed upon with the International Monetary Fund (IMF) and, if successful, expects to obtain fresh funding to alleviate its international reserve scarcity crisis. An Economy Ministry team is set to travel to Washington tomorrow.

Last week, Argentina made its US$ 2.7 billion June payment to the IMF, paying part of the amount in yuan to avoid further depletion of the country’s scant US dollars.

In August 2020, then-Economy Minister Martín Guzmán finished renegotiating the private debt with three creditor groups, reducing the debt total by US$ 35 billion. Bondholders receive payouts on the restructured debt every January and July.

Out of the coupon payments announced today, some US$ 355 million correspond to the AL29, AL30, AL35, AE38 and AL41 bonds (under local law), US$ 40 million to the GE29, GE30, GE35, GE38, GE41 and GE46 Euro Global bonds (under foreign law); and US$ 627 million to the GD29, GD30, GD35, GD38, GD41 and GD46 Global bonds in US dollars.

Argentina has to face other payments to the IMF for which it will need international reserves — the country has to pay almost US$ 1.3 billion on Friday, some extra US$ 650 million the following week, and another US$ 680 million on July 28.


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