With the problem of the debt in default practically resolved, depending on the agreement reached with the creditors, the Minister of Economy, Martin Guzman, freed his agenda a bit more to focus on the problems of the real economy and focus on the plan to exit the crisis for the post-pandemic.
In this context, prepares for Friday two meetings by Zoom with the business sector to have first-hand their impressions of how they analyze the progress of the economy, the impact of the debt renegotiation on businesses and what are the needs they face in the face of the next stage. Official sources stated that first he will meet with small and medium-sized businessmen and then, on the same day, with the leadership of the Argentine Business Association (AEA), who presides Jaime Campos.
It will be the second virtual meeting that the head of the economic portfolio will hold with the country’s main businessmen. The last happened at the end of May, and at that time its main objective was to convey to you how the negotiation with the bondholders was progressing and the firm decision that the Government had to avoid default. Although this scenario seemed to be close weeks ago, the parties finally reached a consensus and Argentina aspires to have the swap successfully closed by the end of this month.
The last meeting was attended by Luis Pagani (Arcor), Paolo Rocca (Techint), Carlos Miguens Bemberg (Miguens Bemberg Holdings), Verónica Andreani (Grupo Logístico Andreani), Federico Braun (Supermercados La Anónima) and Enrique Cristofani (Banco Santander). The same figures, and perhaps some others, will be present this Friday at the new meeting with the minister, already with the debt agreement reached.
The expectation is that the private sector will show satisfaction with the agreement and the prospects that, once concluded, Argentina can begin the recovery stage with more relief. Guzmán will seek to know the vision of the owners of the main companies not only of the current situation, difficult for many sectors of the economy, but also towards the medium term.
Businessmen admit that solving the debt problem is an important step, but it is not enough to get the country back on track. For this reason, they will try to know from Guzmán what is the course that they are delineating in the Government. For example, what is the package of 60 measures that the Government has been preparing for weeks to announce when the health situation calms down.
SMEs will also convey to you the difficulties they are going through in the framework of the pandemic and what are the main needs they have going forward. In the Government they assure that Guzmán has a lot of contact with small and medium-sized companies and that in all the meetings he emphasizes the importance of promoting them with specific measures. « There is an important work agenda with SMEs to boost the domestic market, » said the sources.
Regarding the debt swap, the Finance Ministry team is finishing drafting, together with the lawyers, the prospectus with the amendment of the offer to be presented in the next few days before the Securities & Exchange Commission (SEC). The government’s idea is to do it on Friday, since the term was extended until the 24th and a minimum of 10 days is required for creditors to accept or not enter the operation. Previously, a decree of necessity and urgency will be known that will give way to the new offer for debt under foreign law and for that under local law.
It is expected that the exchange of the bonds will take place on the 4th of next month and that, in this way, the country will leave behind the default that began at the end of last May.
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