In an article published by LatinFinance on May 8, Cefeidas Group Managing Director Juan Cruz Díaz was quoted on Buenos Aires Province Governor Axel Kicillof’s approach to debt negotiations during the COVID-19 pandemic.
He has since had to soften his stance due to challenges he faces on multiple fronts as governor, said Juan Cruz Díaz, a director of Cefeidas Group, an international advisory firm in Buenos Aires. Not only is Kicillof overseeing the debt negotiations, but he is running an “always difficult” province during the COVID-19 pandemic, Díaz said.
“Faced with this context, it’s evident that he has reduced his level of confrontation when it is necessary,” Díaz said. “We are seeing a Kicillof who has a lot of complicated responsibilities and is facing harder times ahead. A default would create a lot of complications for financing in the future.” The change in tactics has caught bondholders by surprise, who are now dealing with “a Kicillof who is going to be moderate when he needs to be,” he said.
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