The government of Argentina says it cannot increase the value of its repayment offer to the country’s creditors because “we are not 100% confident that we can afford [what we have already offered].”
An unnamed government official tells Euromoney that the deteriorating economic and fiscal situation in Argentina – which has already suffered two years of recession before this year, when Covid-19 is expected to see a further 10% contraction of GDP – has complicated its ability to model the sustainability of its current offer, which is worth roughly 53 cents on the dollar.
“Argentina has implemented a fiscal programme [in response to the pandemic] worth about 3% of GDP, and we have seen a fall in revenues worth about 2% of GDP,” he says.
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