The governor of Córdoba, Juan Schiaretti, announced this Monday that the province reached a agreement with foreign bondholders to implement changes in maturities and lower interest rates in the restructuring process of about US $ 1.7 billion.
Schiaretti made the announcement to the media in the main auditorium of the Government House and stressed that “changing the maturities of the debt means that in the next four years the Province will stop paying US $ 700 million for principal and interest that it had, due to the original conditions of the contracts. “
“The Province has lowered the interest rate with respect to the original contracts, which means savings, from this year 2021 to 2029, of US $ 200 million,” explained the president.
This reduction was achieved by lowering from an average 7.23% of the interest rate of the original contracts, to 6.08% on average of the new debt restructuring, explained the governor.
Last week, the province modified the terms of its request for consent for the restructuring of its debt in dollars and enabled an increase in the interest rate offered, as well as a cash payment offer of 30% of the accrued interest for the accept the offer.
In this sense, the modifications also included a new payment schedule for the securities to be restructured – about US $ 1,700 million in three bonds maturing in 2021, 2024 and 2027 – with the aim of reaching the necessary acceptance in the action clauses collective (CACs) and, thus, change that debt for new titles under the agreed conditions.
The president was accompanied by the Renegotiation Committee, a team responsible for carrying out negotiations with creditors, made up of the Minister of Finance, Osvaldo Giordano, the Minister of Public Works, Ricardo Sosa, the President of the Bank of Córdoba, Daniel Tillard, and the finance secretary, Roque Spidalieri.
In his Twitter account, then, the governor said: “I want to communicate to the families of Córdoba that Córdoba has just restructured its external debt of securities with foreign jurisdiction in a successful and without going into default. We are the first Argentine province that manages to restructure its debt without going into default. “
Then, in that social network, he explained the details of the agreement and said that “Córdoba has the characteristic of always acting by taking debt only to do public works. This debt was to do the major public works plan of the history of the Province that all the people of Cordoba know throughout the entire provincial geography “.
“We are satisfied with this very convenient arrangement for the Province, and we want to thank the people of Cordoba for the trust they have always placed and that we are going to pay back by acting seriously and austerely in the management of public finances, “the governor closed.