The Argentine government deferred the payment of bonds in USD issued under local law

By means of Decree No. 346/2020 (the “Decree”), which was published in the Official Gazette on 5 April 2020, the National Executive Power deferred payments of interest and amortizations of capital of national public debt instrumented by financial instruments issued in USD under local law. Such payments were postponed until 31 December 2020, or until a prior date to be determined by the Ministry of Economy. 

The Decree enables the Ministry of Economy to perform all operations of administration of liabilities and/or debt swap and/or restructuration of securities which payments are deferred with the aim to “recover and ensure the sustainability of public debt”.

The following financial instruments are exempted from the deferment established in the Decree:

i) Non-transferrable notes in USD held by the Argentine Central Bank, included those issued under section 61 of Law No. 27,541 and bills of exchange subscribed directly by the Guarantee of Sustainability of the National Pension System Fund of the Social Security Administration.

ii) Notes issued by Decree No. 668/19.

iii) Treasury Notes issued by Joint Resolution No. 57/19 of the Secretary of Finance.

iv) Treasury Notes in USD issued by Joint Resolution No. 17/18 of the Secretary of Finance.v)

v) “Program Natural Gas Bonds”, issued by Joint Resolution No. 21/19 of the Secretary of Finance.

vi) Guarantee Treasury Notes issued by Resolution No 147 – E/17 of the Former Ministry of Finance and the Joint Resolution No. 32/18 of the Secretary of Finance.

Payment of interests and amortizations of capital of financial instruments mentioned in points i) and ii) above will be replaced, when payable, by new public instruments which conditions will be defined by the Ministry of Economy.