On Friday, the crisis-sickened Argentine Government of President Fernandez, a far-left Peronist, had missed out a bond payment worth of around $500 million, potential lenders alongside a global rating agency had confirmed, remarking the nation’s ninth sovereign debt default amid an ongoing negotiation with the creditors.
Besides, the default on three dollar-denominated international bonds totalling a stark upsum of $65 billion in foreign debts came forth as the grief-sickened nation’s Economy Minister was quoted saying that the talks had been on an affirmative course, although at least three sources familiar with the talks had confirmed earlier last week that the debt restructuring terms which the Argentine Government had titivated into the bargaining table, had been met with steep rejection.
In tandem, the sources also added on condition of anonymity that the terms would include a zero pay-off period of three years, while the maturity periods of the three bonds worth of $65 billion would be moved backwards to 2030 with a rise of 30 to 35 per cent in pay offs, nonetheless, the creditors had urged for more and discarded the present offer.
On the contrary, another source close to the Argentine Government said separately to a press agency followed by the bond default that the two sides, the creditors and the Argentine Govt., had been making a substantial scale of progress over the recent past, while a comprehensive revamp deal could be a “matter of days, not months”.
Bondholders talks extended as Argentina logs ninth default on bond payment
Amid conflicting remarks whispering across the money markets, the creditors had been trading proposals over the past month, pointing towards an eagerness to prevail an en-masse mishap, while as a sign of good gesture screening Argentina’s willingness to pay off the debts, the country had pushed the deadline for a restructuring deal to June 2nd.
Nonetheless, as further default could complicate matters in the copious-most manners with likely involvement of a number of major economies including the US and EU, raising an alarming bell for the $65 billion in Argentine sovereign debts, Moody’s Vice President Gabriel Torres said in a statement followed by the default, “Argentina today failed to pay $503 million in interest which was originally due on April 22.
We expect the road ahead for Argentina’s debt restructuring is likely to become more problematic. ”