BUENOS AIRES, July 23 (Reuters) - Argentina's Buenos Aires
province is confident of a high acceptance for its $7 billion
debt restructuring after agreeing a deal with key creditors, a
source close to the talks said, despite some bondholders
criticizing the offer.
The province said on Wednesday that it had struck a
breakthrough agreement in long-running talks with main creditors
to restructure its international debts, though the key Ad Hoc
bondholder group said it had not endorsed the deal.
"It is trusted there will be a high participation, while the
inflexible funds that say they reject the agreement represent a
very minority percentage," the person close to the talks said,
asking not to be named as the negotiations were private.
The person said that the province had negotiated with
creditors holding a large proportion of the bonds within the Ad
Hoc group. The agreement had included main creditor GoldenTree
Asset Management, the government said this week.
"The negotiation of the economic terms has already been
closed with the main creditors," the person said. "The province
is now completing the documentation to formalize the final
amendment to the offer."
The local government has extended the invitation deadline
for creditors to accept of reject the offer to Aug. 13.
Provincial bonds, which have been weighed down over the last
year by the tense talks, default and threats of litigation, have
risen recently as hopes of a deal have climbed.
Argentina's national government restructured over $100
billion in foreign currency debt last year after a ninth
sovereign default. It is also locked in talks with the
International Monetary Fund to revamp $45 billion in payments.
The South American grains producing nation, which was once a
global economic powerhouse, has struggled with a series of
currency and debt crises in recent decades that have weighed on
growth and driven up poverty levels sharply.
(Reporting by Walter Bianchi; Writing by Adam Jourdan
Editing by Marguerita Choy)