Reports: Argentina extends talks with creditors until June 2

Buenos Aires – (dpa)

Posted on: Friday, 22 May 2020 – 2:11 am | Last update: Friday, May 22, 2020 – 2:11 am

Argentina has extended debt restructuring talks with its creditors until June 2, the Clarin newspaper quoted on Thursday, sources at the Ministry of Economy.

It was scheduled to end today, Friday, the deadline for restructuring $ 65 billion of external debt after it had been extended earlier.

Clarin and other media have said that the government will not pay $ 503 million of the bond interest service that was due by Friday, and technically it continues to “default slightly” as the talks continue.

The International Monetary Fund said earlier on Thursday it hoped to reach an agreement.

“We have been encouraged by the preparations of both sides to continue the talks,” spokesman Jerry Rice said in a video posted to his account on Twitter.

Failure to reach an agreement would result in Argentina’s ninth default and threatening to bankrupt the country.

Creditors rejected Argentina’s offer, which included a three-year moratorium, a cut in interest payments by 62 percent, and a 5.4 percent reduction in major payments.

The Argentine government announced last Friday that it had received three new counter-offerings from creditors regarding the rescheduling of its debt, days after Argentina extended the deadline for its debt restructuring deal to 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 at a video conference organized by the Council on Foreign Relations.

“If there are other sensible ideas and taking into account our limited capabilities, we are happy to hear them,” added Guzman, without disclosing details of the offers.

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