Argentine Government unilaterally postponed the payment of local "dual bond" due 2020
The Argentine
Government unilaterally postponed the payment of local “dual bond” due 2020
On February 12th, 2020, the Official Gazette published Urgency and
Necessity Decree No. 141/2020, which unilaterally postponed the payment of the
principal due under the “Bonos de la Nación Argentina en Moneda Dual
Vencimiento 2020” until September 30th, 2020 and interrupted the
accrual of interest.
The postponement does not include interest already accrued, which shall be paid
in accordance with the original terms and conditions.
Further, the measure does not reach those bonds up to US$ 20,000 of face value
held, directly or indirectly, by individuals as of December 20th, 2020, who
maintain the bonds under their ownership at the payment date.
The Government stated that the payment of the bond under the original
conditions would have put into jeopardy the macroeconomics foundations of the
debt normalization process that the Republic is trying to achieve.
Should you need any further information, please do not hesitate to contact Tomás M.
Araya.