Beat Siegenthaler of Commerzbank Emerging Strategy Team says that after the passage of the bill the way will be clear for the government to announce the terms of the debt swap. He expects the announcement to be made shortly “as the government is keen to do so before the next Paris Club meeting in mid-April in order to have a chance for the rescheduling to be discussed at this meeting.”<\/p>\n
Siegenthaler also mentions in a 30 March release that another deadline is 27 April when the grace period for the $23.75m coupon payment on the $2006 will expire. “We understand that it has been the government’s intention to conclude the debt swap by this time rather than pay the amount.”<\/p>\n
Furthermore, he comments: “We believe current prices reflect expectations of a restructuring on benign terms, including maturity extension but no haircut. We also continue to believe that there will be some form of interest capitalisation. We maintain our positive view on the credit as the economic story continues to look strong (see our DR report, March 11). The main risk – as extensively demonstrated over the last few weeks – is the political stalemate between government and opposition.”<\/p>\n","protected":false},"excerpt":{"rendered":"
Beat Siegenthaler of Commerzbank Emerging Strategy Team says that after the passage of the bill the way will be clear for the government to announce the terms of the debt swap. He expects the announcement to be made shortly “as the government is keen to do so before the next Paris Club meeting in mid-April … <\/p>\n