Argentina has extended debt restructuring talks with its creditors until June 2, Clarin newspaper quoted sources in the Economy Ministry as saying.
The deadline for restructuring $ 65 billion in foreign debt was due to expire Friday, after it was extended earlier.
Clarin and other media said the government would not pay $ 503 million in bond interest service that was due by Friday, and technically it continues to “slightly default” while the talks continue.
The International Monetary Fund said earlier on Thursday that it hoped to reach an agreement.
“We are encouraged by the preparations of both sides to continue the talks,” spokesman Jerry Rice said in a video clip posted on his Twitter account.
Failure to reach an agreement would result in a ninth default by Argentina and threatening to declare the country bankrupt.
Creditors rejected Argentina’s offer, which included a three-year moratorium on interest payments, a 62 percent cut in interest payments and a 5.4 percent cut in major payments.
Last Friday, the Argentine government announced that it had received three new counter offers from creditors on rescheduling its debts, days after the extension Argentina The deadline for its debt restructuring deal is May 22.
Finance Minister Martin Guzman said he would study the offers with his team and financial advisors.
“We want to find a sustainable solution to the debt problem and a healthy and lasting relationship with our creditors,” he said in a video conference organized by the Council on Foreign Relations.
“If there are other reasonable ideas that take into account our limited capabilities, we would be happy to hear from them,” Guzman added, without disclosing details of the offers.
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