Argentina reaches technical default on payment of external bonds for nonth time

Source : 112 Ukraine

The government is in talks with creditors to restructure the foreign debt of $ 66 billion
11:43, 23 May 2020

Open source

On Friday, Argentina delayed the payment of bonds and approached another technical default - the ninth in its history, as the New York Times reports.

“I want the world to see us as a worthy country that fulfills its obligations,” President Alberto Fernandez said. He previously underestimated the value of the missed payment on foreign bonds.

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Moody's credit rating agency informed that Argentina has not fulfilled obligations to pay interest on international bonds in the amount of 503 million dollars after the expiration of a 30-day grace period, Reuters writes.

According to the news agency, non-fulfillment of debt obligations corresponds to the current credit rating of the country at the level of CA ("obligations are close to default").

The government assured that it was approaching an agreement with creditors to restructure foreign debt of $ 66 billion. Negotiations will continue until June 2.

Argentina's last default on external debt occurred in 2014. The history of excessive government spending and defaults on loans has created the country a reputation as a hopeless debtor. But her current efforts to negotiate a beneficial debt restructuring have received widespread support from prominent figures, including Pope Francis and lawyer, recognized bankruptcy expert and commercial lawyer Elizabeth Warren of Massachusetts, USA.

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A group of 138 economists, including Nobel laureates Joseph Stiglitz and Edmund Phelps, signed an open letter urging Aregntina's creditors to come to terms with a cash-strapped country. The International Monetary Fund also expressed optimism regarding negotiations on Argentina's debt restructuring, which was described as "volatile."

As we reported before, Argentina decided to double the visa-free stay for the Ukrainian citizens up to 90 days within six months

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