Bloomberg News reported yesterday (April 9) that A few days ago, this group, which owns local government bonds,La Rioja city (La Rioja) Northwest Argentina has entered into talks with financial advisers ahead of the bond repayment date after officials earlier defaulted on more than $16 million in principal payments.
In this regard, the Committee of Creditors who holdBonds payableIn 2025, it said it appointed Quinn Emanuel Urquhart & Sullivan, LLP as consultants and asked La Rioja city officials to comply with its scheduled obligations within the next week.
The local government in Argentina is on the verge of defaulting on several debts.
Meanwhile, Bloomberg analysis reveals that the boycott, which was held on February 24, Default on repayment of the loan principalAlready, $15.9 million (about 588.3 million baht) in interest worth $10.4 million had been paid at the end of March.
A spokesman for the governor of La Rioja did not respond to a request for an interview, while trustee BNY Mellon declined to comment.
Impact of shock therapy policy
According to Bloomberg's analysis and also reported, La Rioja's population is about 385,000 people, and it is one of several provinces affected by the reduction in aid from the federal government.Javier Miley President of Argentina This event is part of the measures. “Shock therapy” or shock therapy The president revealed that it is necessary to get the economy back on track after decades of mismanagement by the previous administration.
Such policies create economic “pain” amid cutback announcements.The value of the pesoIt plans to cut 70,000 government jobs and phase out price controls.
Meanwhile, La Rioja's governor criticized Millay's plan to freeze civil servant salaries as too strict.
In addition, the Central Bank revealed last Monday that Argentina's economy contracted by 3.5% this year.
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