On Friday, may 22, Argentina failed to pay $66 billion in foreign obligations, being thus in default. Writes the Buenos Aires Times, the authorities refused to pay the debts prior to the conclusion of the restructuring agreement.
The publication notes that this is the ninth of default in the country’s history and the second since the beginning of the XXI century (the last time the country defaulted in 2001).
A period of negotiation with creditors extended until 2 June. Source Reutersclose to the negotiations said that the parties unable to reach agreement in the coming days.
Agency Associated Press notes that Argentina is trying to restructure its debt totaling $66,23 billion (the total amount of the national debt is about $323 billion). At the end of last year, even before the start of the pandemic coronavirus, the government offered the bond holders to write off $37.9 billion in interest and establish a three-year grace period with an interest rate of 0.5%.
On may 22 the Buenos Aires had to pay to the holders of about $500 million, but could not agree terms with the creditors.