The adhesion to the debt swap reached 93.5%, Argentine Economy Minister Martin Guzmán informed last Monday. The announcement occurred at a press conference at the Casa Rosada attended by President Alberto Fernández, Vice President Cristina Fernández (no relation), and the provincial governors.

Thanks to the application of the Collective Action Clauses (CACs), 99% of the foreign debt has already been exchanged and only 1% remains in default. It is important to remember that to restructure the entire series of bonds, it is necessary to gather a majority of creditors who accept the swap of said series and also a stricter majority of the creditors of the family of bonds in which it is registered. Thus, for the K bonds, 66.7% of each series and 85% of the total of this family is required; while for the M bonds, 50% plus one of each series and 66.7% of the family is required.

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"99% of the debt under foreign law has already been restructured, this is condoned with a total adhesion to the exchange of 93.5% which, due to the work of the CACs, raises the percentage restructured to 99%," Guzmán said.

"We are moving forward in resolving the virtual default by generating a consensus in which society is considered as a whole," the minister emphasized regarding the guarantee obtained in Congress for the restructuring of the debt and anticipated that the agreement with the IMF will also be submitted for congressional approval.

99% of the debt under foreign law has already been restructured; this is condoned with a total adhesion to the exchange of 93.5%, which, due to the CACs, raises the percentage restructured to 99%.

As the Minister explained and also taking into account the debt under national law, "Argentina will have relief over the next decade of $37.7 billion and the average rate drops from 7% to 3.07%, allowing for greater relief in the first five to ten years," Guzmán said.

Vice President Cristina Fernández de Kirchner. 

"We sought to make the restructuring of the debt a State policy and not just government policy," the Minister said, stressing that the Administration aims to prevent a repeat of a process of indebtedness based on the expectations of a government that then affects society.

Guzmán stressed that the next step is to solve the foreign currency indebtedness of the provinces: "This generates problems for the rest of the economy because there is only one cash register. That is why it is very important that now all the provinces that have debt in dollars continue to solve their problems by respecting the sustainability guidelines that the national government has established," he said.

The minister also noted that on September 15 he will send to Congress the Budget Bill in which the policy agenda for the growth of the economy will be established. He anticipated that for next year a fiscal deficit of 4.5 points of GDP is projected.

Guzman anticipated that for next year a fiscal deficit of 4.5 points of GDP is projected and said that the next step is to resolve the provincial dollar debt

"The primary fiscal deficit that is targeted has to do with the idea that it has to be large enough to have the capacity to drive the economy, but it also has to be contained enough in terms of what the capacity is to finance what we have. This law will point out that we are betting on a primary fiscal deficit of around 4.5% of GDP".

Martín Guzmán at Monday's press conference. 

President Alberto Fernandez noted that Argentina went into default in January 2018 when the markets cut off the country's funding and that he will "pull the country out of the labyrinth" of debt left by his predecessor's government, Mauricio Macri. Peronist Fernández came to power on a ticket with the former president and now vice-president Cristina Fernández de Kirchner.