Argentina Fixed Income Market

The government decided to extend the deadline for the sovereign restructuring to May 22nd, a decision made in a context where most of the public comments from bondholder groups pointed to a rejection of the proposal, considering it unilateral and lacking a backup plan. It remains to be seen whether the extension of the term will also bring an improvement in the exchange conditions or if the government will continue without negotiating with the bondholders. If the government remains inflexible, it risks facing a hard default when the grace period expires on April 22nd. Other options that the government may consider are a standstill to keep negotiating with bondholders without facing an event of default.