Buenos Aires – Al-Quds.com – (dpa) – The Argentine government rejected the most recent proposal by its creditors, amid a months-long dispute over debt reduction.
On Saturday, the Ministry of Economy in Buenos Aires said that the new requests could not be met.
“It will not only be irresponsible, it will also be unfair,” the ministry said in a statement.
“With more than 50 percent of Argentine children living in poverty, we cannot further support and improve the economic recovery in the short term for creditors by transferring the resources necessary to give our children a chance at least for a better future,” the statement said.
The debt in South America’s largest economy is no longer sustainable under the current circumstances, and therefore, Argentina is demanding that its private sector creditors waive part of their claims, which are estimated at 66 billion dollars.
If no agreement is reached, bankruptcy will threaten the country again, and it will be the ninth time that the country has defaulted in Argentine history.
Lenders recently called for raising interest rates on government bonds and making changes to some contractual terms. However, the Argentine government is sticking to its latest offer and is not ready to make any further concessions.
Argentina faces a serious financial and economic crisis, and the inflation rate has increased by more than 50% recently.
Experts expect this year that the economy will decline by about ten percent.
At the end of May, Argentina failed to pay $ 503 million in interest, resulting in defaults.