Argentine President Alberto Fernandez confirmed that his country is still open to negotiations with international creditors and extended its offer to restructure its public debt until Monday.
The talks between Buenos Aires and its creditors have reached a dead end over its $ 65 billion debt, with the three main bond-holders rejecting a government restructuring proposal that expired Friday.
“The possibility of the offer being extended continues until Monday, May 11,” Fernandez said on Twitter. When this deadline has passed, we will determine the steps that will be taken. ” “We continue to engage with the creditors in good faith with a view to reaching a sustainable agreement,” he added. “As usual, our goal is to make commitments that we can fulfill,” he said.
The 30-day grace period for Argentina to make a payment of $ 500 million is due to expire on May 22 after it failed to pay it on time.
Economy Minister Martin Guzman took a firm stance on debt, partly driven by the need to free up resources to cope with the outbreak of the new Corona virus in the country in recession. He stressed that Argentina was still negotiating and thanked the creditors who supported the proposal.
The Buenos Aires offer to creditors includes writing off 62% of the interest on debt, or $ 37.9 billion, and 5.4% of the capital, or $ 3.6 billion. Argentina also requests a three-year freeze, which means that no amount will be paid until 2023.
And if Argentina does not pay the money, it will mean failure to pay, which is a catastrophic scenario for the cash-strapped country, which will prevent the government from borrowing from the financial markets.
And stagnated Argentina imposed two years ago, to close to 20 March, to contain Covid 19, which was another blow to its economy.
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