UPDATE 2-Suriname requests 70% haircut on commercial debt, bond prices fall

  • 6/2/2021
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(Updates bond prices, adds no response from creditors) NEW YORK, June 2 (Reuters) - Suriname requested a 70% nominal haircut on its debt to external commercial creditors and a 30% cut on its debt to official creditors, the government said on Wednesday. The government proposed a $236 million instrument maturing in 2029 to replace amounts outstanding, interest and arrears totaling some $786 million in marketable debt. It also requested a 30% average nominal haircut on about $708 million currently owed to bilateral creditors and export credit agency-backed commercial lenders. “To find a path of balanced and inclusive growth, public debt sustainability needs to be restored. We are committed to this as part of the IMF-supported program,” said Armand Achaibersing, Suriname’s minister of finance and planning. Commercial holders had in April agreed to defer payments on $675 million in bonds but last month said Suriname had not allowed them sufficient participation in a $690 million financing deal with the International Monetary Fund and threatened to reinstate the deferred payments. A representative of the creditor group did not respond to an emailed request for comment. Suriname’s 2026 bond was quoted at 69.25 cents on the dollar, down 1.75 cents on the day and yielding nearly 18.5%, while the 2023 fell 1 cent to trade at 70.5 cents. (Reporting by Rodrigo Campos Editing by Jonathan Oatis and Steve Orlofsky) Our Standards: The Thomson Reuters Trust Principles.

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