Argentina extends $65 billion debt restructuring offer as creditors decline proposal


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Argentina extends $65 billion debt restructuring offer as creditors decline proposal

Late on Monday, the 11th of May 2020, the Argentine Government of President Alberto Fernandez, a far-left Peronist whose landslide victory on Argentina’s general election later last year had witnessed an outflow of tens of millions of dollar worth of assets from the country over frets of a warding off in to the Soviet-era financial system, had extended the deadline of an overhaul offer of its $65 billion worth of debts in dollar-denominated internationally traded bonds up to May 22nd, at the same day the grief-sickened country has been due to pay off a stark total of $500 million against its $65 billion in debts.

Nevertheless, followed by the Argentine Government’s Monday’s (May 11th) announcement, several analysts were quoted saying that the talks would unlikely to yield a notable solution to the present stand-off given a gloomier outlook of Argentine economy catalysed by a protracted recession, a higher inflation rate, a rising borrowing cost alongside the ongoing pandemic and the Latam country might botch to prevail its ninth sovereign bond default, while a majority of heavyweight creditors were pressing for a better restructuring deal.

Besides, according to the present deal, Argentine Treasury offers a three-year cancellation of pay offs and a push back of bond maturities up to 2030 alongside a 30 to 35 per cent higher net value against the debts, however, creditors had brushed away the proposal and urged for a better deal, stoking possibilities of a long-term deadlock over the debt revamp amid a pandemic at large.