Argentine President Alberto Fernandez confirmed that his country is still open to negotiate 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, as the three biggest bond holders rejected the government’s proposal to restructure, which ended on Friday.
“There is a possibility to extend the offer that will last until the end of the day … When this deadline ends, we will determine the steps that will be taken,” Fernandez said on Twitter.
He added: “We continue to work with creditors in good faith to reach a sustainable agreement.” He said, “As usual, our goal is to make commitments that we can fulfill.”
Argentina’s 30-day grace period to repay $ 500 million is due to expire on May 22, after failing to pay it on time.
Economy Minister Martin Guzman took a firm stance on debt, partly driven by the need to free resources to cope with the outbreak of the new Corona virus in the country in recession, stressing that Argentina was still negotiating. He thanked the creditors who supported the proposal.
The Buenos Aires offer to creditors includes writing off 62% of interest on debt, or $ 37.9 billion, and 5.4% of capital, or $ 3.6 billion.
Argentina also requests a 3-year freeze, which means that no amount will be paid until 2023.
And if Argentina does not pay the money, that means failure to pay, which is a catastrophic scenario for the financially strapped country, which will prevent the government from borrowing from the financial markets.
And stagnant Argentina imposed two years ago, a closure since March 20, to contain (Covid-19), which was another blow to its economy.
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