Argentina reaches agreement with creditors on rescheduling its debt

Buenos Aires – DBA


Posted on: Tuesday 4 August 2020 – 6:15 pm | Last update: Tuesday 4 August 2020 – 6:15 pm

The Argentine Ministry of Economy announced today, Tuesday, that the country has reached an agreement with its most prominent creditors to reschedule $ 65 billion in debts, which paves the way for the country to avoid defaulting on more debts and entering into bankruptcy.

The agreement was reached after months of negotiations, as part of the state’s efforts to schedule debts it said it was unable to pay.

Argentina’s economy suffers from a recession as well as high rates of inflation, unemployment and poverty even before the emergence of the Corona pandemic. Experts expect the economy to shrink by 10% this year.

The agreement was reached after the government improved conditions in its previous proposal, which it said was its last offer, after creditors rejected it.

The government postponed the creditors ’deadline to confirm the agreement from Tuesday to August 24.

In May, Argentina recorded the ninth default in sovereign payments when it defaulted on payments of about $ 500 million.

A new agreement was reached with a group of major investors.

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