For the ninth time in a row, Argentina has defaulted on its debt in its history. But the government of left-wing President Alberto Fernandez is seeking to strike an agreement with Argentine bond owners, without starting the default procedures.
Argentina again failed to make a payment of $ 500 million, but negotiations to restructure $ 66 billion of its debt are still ongoing.
“We do not pay the benefits, but the negotiations are continuing,” a source in the Argentine government told AFP.
“There is still a great distance to cross, but the most important thing is that all parties are still sitting at the negotiating table to find a solution,” said Argentine Economy Minister Martin Guzman.
Guzman said that the extension of the negotiations “provides flexibility in the event that his country decides in the coming days to amend its proposals to reach a viable agreement with its creditors.”
On May 11, Argentina extended its proposal to restructure its debt. Argentine President Alberto Fernandez confirmed that his country is still open to negotiations with international creditors, noting that it has extended its offer to restructure its public debt.
In the Buenos Aires Stock Exchange, the Mirval index recorded a decrease of 1.03 percent at the close on Friday evening, reaching 40,962.76 points. During the week, the stock market rose by 3.99 percent, as negotiations continue between the Argentine government and its creditors.
This is the ninth time that Argentina has defaulted on its debt. But the government of left-wing President Alberto Fernandez is seeking to strike an agreement with Argentine bond owners, without starting the default procedures.
The Argentine government announced late Thursday to extend the deadline it set for debt restructuring until June 2.
This ten-day extension only suggests that the Argentine government and its creditors may be close to an agreement, even though the new deadline for the deadline is not necessarily final, as the government made clear Thursday.
These negotiations were supposed to end on May 8th, at the latest. However, in the absence of an agreement, it was extended until Friday, on the day that the interest in the value of $ 500 million was due, which must be paid.
In total, Argentina’s debt is $ 324 billion, or about ninety percent of its gross domestic product.
For his part, International Monetary Fund spokesman Jerry Rice confirmed that this international financial body supports Argentina in restructuring its debts, and “trusts the will of the two parties to continue negotiations to reach an agreement.”
According to the debt repayment schedule, there are other interest payments due in June. And with a 30-day amnesty, Argentina can count on a halt until the end of next July.
The new Corona virus also caused a severe slowdown in the economy, and forced the government to release funds to alleviate its impact on the most vulnerable residents and companies.