TIMELINE

By Marina Lammertyn

3 Min Read

BUENOS AIRES, Aug 4 (Reuters) - Argentina is on the cusp of a historic deal to restructure $65 billion in debt, burying the ghost of past acrimonious battles with creditors as the country seeks to emerge from default.

Aug 12, 2019: Sovereign bonds, along with equities and the peso, plummet after conservative President Mauricio Macri loses primary election by landslide to Peronist Alberto Fernandez. Aug 28: Macri administration says it will have to renegotiate debt with creditors and International Monetary Fund. Oct 28: Fernandez wins general election. Creditors brace for battle with incoming administration. Dec 10: Fernandez government comes into power, pledges “constructive” dialogue with creditors. In his cabinet, he picks young whiz-kid economist Martin Guzman, who is expected to take the lead on debt negotiations. Jan 21, 2020: Guzman announces plan for restructuring of public debt in a bill sent to Congress. Feb 19: The IMF says Argentina’s debt is “unsustainable” and country’s needs major creditor support. March 12: In first interview with international media Guzman says the country needs “substantial” debt relief from creditors, as Argentina is struck by the coronavirus. Apr 6: Government freezes payments on local-law dollar debt. Apr 21: Argentina launches first offer to creditors seeking major reduction in coupons and a three-year payment halt. May 4: Creditor groups jointly reject proposal and later that month present separate counteroffers to the government. May 22: Argentina slips into its ninth sovereign default. Guzman tells Reuters the government will amend its offer. June 17: After winding talks inching the sides closer together, Argentina says a counteroffer proposed by creditors is “unsustainable” and creditor groups slam talks as having failed. July 5: Without creditors on board, Argentina presents first formal amended offer, improving coupon payments and accelerating maturities. Government calls it the “maximum” effort. July 20: All three creditor groups unite for the first time behind a counterproposal, pushing for tweaks to legal terms and a slightly higher payout. Aug 4: After weeks of gridlock, Argentina says has reached an “agreement” to restructure the debt. Key creditor groups say they support the deal. Aug 24: Deadline for creditors to formally accept the offer.

Reporting by Marina Lammertyn; Editing by Adam Jourdan and Steve Orlofsky

Our Standards: The Thomson Reuters Trust Principles.