Gorbachev and Bono back Argentina’s debt offer

The former President of the Soviet Union and the leader of the rock band U2 signed a letter to be submitted to the world’s major newspapersr, in which consider Argentina 60% cut to bondholders a reasonable and responsible offer.
What prominent world figures as the last USSR President Mikhail Gorbachev; U2 leader, Bono; and the US actress Emma Thompson have in common? All of them back Argentina’s debt restructuring plan, which includes a 60% cut to its nominal value and has been angrily rejected by bondholders around the globe.

In a letter that will appear in world’s main newspapers, around 100 top celebrities and prominent officials from all continents praise that Argentina is a reliable country and its offer to repay its $ 81.2 billion debt is also reliable because takes into account current social situation of South America’s second biggest economy.

Argentina’s Foreign Ministry was in charge of collecting the signatures to the document in order to counterattack the pressure of global bondholders that claim for a lower cut and “fair negotiations”. Precisely, the document states that Argentina’s bid is a fair attempt to settle differences in the best terms as possible.

Argentina offered to pay 40% of the $81.2 billion in default with new bonds at a top 8.32 rate, according to maturity. However, creditors claim for a 30% cut, higher rates and an initial payment in cash of $5.2 billion.

“The Argentine offer probes the decision of the government to lead the country to a future of sustainable growth and social inclusion”, reads the letter. It also remarks the “big effort” all Argentineans are doing everyday, as the country holds an enormous social debt that calls for urgent actions.

Further personalities that signed the document are: the former Uruguayan President, Julio Marнa Sanguinetti; Italian lawmaker, Massimo D’Alema; the former Turkish President, Suleyma Demirel; the “Lord of the Rings” star, Viggo Mortensen; the Literature Nobel Prize, Gabriel Garcia Marquez; and the former President of Ireland, Mary Robinson.

Hernan Etchaleco