The Strategist

Argentina extends debt negotiations while in default

06/02/2020 - 06:00

Argentina, which is in default, has extended the negotiations on debt once again - until the evening of June 12, the Ministry of Economy said.

"Argentina said it had offered debt holders an extension of the period (of debt negotiations)... from 5 p.m. June 2 New York time to 5 p.m. June 12," the statement reads.

The authorities of Argentina maintained active negotiations with investors. "Argentina firmly believes that successful debt restructuring will help stabilize the current economic situation, easing the medium-term and long-term constraints on the economy and allowing it to be directed along the path of long-term growth," the message notes.

As Minister of Economics explained, “today's extension was due to a technical reason.” The authorities needed to have a few more days left to make adjustments to the debt restructuring proposal.

"As soon as changes are made to it, the deadline for the proposal may again be extended," the minister said.

Argentina did not pay interest on bonds in the amount of $ 503 million on May 22 as the country was in the state of the ninth default, which has not yet been legally announced. The authorities proposed a plan that provides for the absence of debt payments for three years, a 62% reduction in interest paid, and the cancellation of part of the debt itself. In general, the country wants to restructure $68.8 billion.