December 18, 2019 / 12:33 AM / a month ago

CORRECTED-UPDATE 1-Argentina bondholders set up creditor group to talk with new government

(Corrects to clarify Axel Weber not involved in setting up of creditor committee)

LONDON/BUENOS AIRES, Dec 17 (Reuters) - A group of around 80 of Argentina’s bond holders have formally set up a creditor group, according to a statement on Tuesday, ahead of debt restructuring talks with the country’s new government that are expected to get underway shortly.

“A group of large institutional holders of outstanding debt securities issued by the Republic of Argentina are collaborating together with the objective of facilitating a constructive dialogue with the Republic’s new administration, anticipating potential liquidity challenges that the Republic may face in the coming months,” the group said in a statement.

The group said it had designated UBS Securities and Mens Sana Advisors as financial advisors and did not specify a lead creditor.

A spokesman for the Argentine Ministry of Economy declined to comment. A spokesman for the Presidency did not immediately reply to request for comment.

The group said it was committed to conducting talks under G20-endorsed Principles for Stable Capital Flows and Fair Debt Restructuring, “which include transparency and timely flow of information, open dialogue, good faith actions, and fair treatment among creditor classes.”

UBS said its Chairman Axel Weber was “following closely the evolving situation in Argentina” as part of his role Chairman of the Institute of International Finance and Co-Chair of the Group of Trustees of the fair debt restructuring principles.

The IIF, last week penned a letter to Argentina’s new Economy Minister Martin Guzman urging him to begin talks with creditors. UBS added Weber was not involved in the setting up of any creditor group.

Reuters has previously reported the existence of at least three bondholder groups.

Argentina’s recently inaugurated government is preparing for negotiations with creditors including the International Monetary Fund (IMF) to restructure around $100 billion in debt after a sharp market crash earlier this year.

Reporting by Marc Jones in London and Cassandra Garrison in Buenos Aires; writing by Rodrigo Campos; Editing by Chris Reese & Shri Navaratnam

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