BUENOS AIRES: Recession-hit Argentina announced on Tuesday it has reached an agreement with three major creditors over the restructuring of a $66 billion debt as it seeks to solve its latest sovereign default crisis.
The government of President Alberto Fernandez had set an August 4 deadline to complete a deal but it has now pushed the date to August 24 "to give effect to the agreement," which came after months of wrangling and extensions.
"We resolved an impossible debt in the biggest economic crisis in memory and in the midst of the pandemic," said a delighted Fernandez. "Now the horizon is clear for where we want to go to."
Argentina's economy ministry said in a statement that the deal "will allow members of the creditor groups and such other (bond) holders to support Argentina's debt restructuring proposal and grant Argentina significant debt relief." The bonds, issued under foreign legislation, represent roughly a fifth of the country's $324 billion debt, which amounts to around 90 percent of its GDP.
Argentina has been in default - for the ninth time in its history - since May 22 when the country missed a deadline to pay $500 million in interest on the debt that is subject to the current negotiation.
It missed another deadline last week to pay $600 million more. The deal involves the Ad Hoc, Argentina Creditor Committee and Exchange Bondholder groups, as well as "certain other significant holders," the economy ministry said.
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