MEXICO CITY – Mexico’s president on Friday said he had spoken to BlackRock Chief military officer Larry Fink at the request of Argentina government to lobby the asset management firm to simply accept Argentina’s offer during debt restructuring talks.
Argentina and its biggest bondholders are hostile over plans to restructure $65 billion in foreign debt, with a number of the world’s biggest asset management companies negotiating with Buenos Aires.
Mexican President Andres Manuel Lopez Obrador, who has previously met with Fink, said Argentine President Alberto Fernandez had called him to ask him to talk to the BlackRock (BLK.N) boss and explain Argentina’s restructuring proposal.
“He knew I had an honest relationship with Larry Fink,” Lopez Obrador told a press conference .
Argentina had been posing for a multi-year halt on bond payments, plus an outsized reduction in coupon payments.
Fernandez had a thought about what proportion of the debt Argentina could repay and told him the plan was “to pay 41% of the debt, a 59% reduction to succeed in an understanding”, Lopez Obrador added.
The president, describing Fink as a “good person”, said he spoke to the BlackRock chief to inquire if he was conscious of the proposals. Fink responded it had been not solely right down to him which he would propose to the board a discount of 50-55%, he added.
Argentine debt holders include Amundi, Ashmore, BlueBay, Fidelity, T., asset managers; Rowe Price and a number of other hedge funds.
Lopez Obrador said he advised Fernandez that the standard recommendation was to succeed in a deal that might be convenient for all parties.
The deadline set by Argentina government to barter the debt restructuring is thanks to expire afterward Friday, although in the week Fernandez said the deadline for the negotiations would be extended by a minimum of 10 days.