By not respecting a $ 500 million deadline, Argentina ceased again on Friday. Negotiations for a debt restructuring of $ 66 billion continue.
For the ninth time in its history, Argentina has gone in by default. Buenos Aires could not honor, on Friday, May 22, a $ 500 million deadline. But negotiations for restructuring $ 66 billion in debt continue.
“We are not paying (interest), but negotiations are continuing,” a source in the Argentine government told AFP.
On the Buenos Aires stock exchange, the Merval index fell 1.03% on Friday at the close. During the week, the stock market rose by 3.99% while discussions between the Argentine government and creditors continued.
Debt amounts to 90% of GDP
The government of the left-wing Alberto Fernandez government is trying to conclude an agreement with the holders of Argentine bonds, without launching the “artillery on default”.
Late Thursday evening, the government had already announced for the second time to extend the deadline it had set for restructuring by designating June 2 as the new deadline. This extension of just ten days seems to indicate that the Argentine government and its creditors may be close to an agreement, although the new deadline is not necessarily final, as the government said on Thursday.
“There is still a long way to go but the most important thing is that all parties remain at the (negotiating) table to find a solution,” Argentine Finance Minister Martin Guzman said on Friday.
The extension of the talks “offers flexibility in the event that (Argentina) decides on the next few days about the amendments (of its proposal) to reach a sustainable agreement with our creditors”, Martin Guzman emphasized.
The negotiations were originally concluded by May 8, but in the absence of an agreement, they had been extended to Friday, when payment of $ 500 million in interest would be paid.
In total, Argentina’s debt reaches $ 324 billion, or nearly 90% of its GDP.