Argentine Senate greenlights law on external debt

Buenos Aires, Feb 6 (Prensa Latina) The Argentinian Senate green-lighted unanimously the law of sustainability of the external debt, which was backed by 65 parliamentarians, following a debate that extended for over 9 hours.

The initiative will serve as a legal framework for the talks with the external debt holders, and concretely deals with the bonds issued in 2005, 2010, and starting in 2016.

The senators gave their approval to allowing the executive power to manage assets, exchanges and/or restructuring of services of expiration of interests and capital amortizations of the public titles issued under foreign law.

The president of the bloc of 'Frente de Todos en el Senado' ('Front of All in the Senate'), Jose Mayans, pointed out that Argentina is not capable of paying off its debt, and the government must guarantee the sustainability.

He also said the total debt under foreign control, as contemplated by the Project, amounts to almost 142 billion dollars, of which 65 billion are in bonds, and the rest is attributed to international organizations.

The senator confirmed that the minister of Economy Martin Guzman has been summoned by the Bicameral Commission for Monitoring and Control of external debt next Wednesday.

Argentina is currently in the middle of a delicate economic situation with a debt of 56.3 billion dollars with the IMF, out of the 57 billion dollars loan the then-president Mauricio Macri took in 2018.