Argentina‘s new offer to bondholders got a tentative thumbs up from investors as they digested the details on Monday, though there was no sign yet of whether it would gain the blessing of the biggest bloc of creditors.
Argentina‘s government laid out an improved offer that increased the amount creditors will receive, shortened the time before they get paid and made some changes in other key areas that had become a source of tension.
Two prominent funds, Gramercy and FinTech, came out within hours saying they would back the deal.
“We look forward to supporting Argentina’s offer as it provides… debt sustainability that is crucial for durable, high and inclusive economic growth,” they said in a statement.
Others were tentatively optimistic too, saying the improvements were hopefully close enough to the wishes of big holders to win their approval.
“Considering everything that the country is going through, it looks to like a fairly good offer,” said bondholder Pala Asset Management’s Alejandro Hardziej, though he said some bondholders might have preferred a “GDP warrant” that pays extra if economic growth improves.