“There is still a considerable distance to bridge, but more importantly, all parties remain at the table to find a solution,” said the minister. Argentina was widely expected to default on its payment obligations for the ninth time in its history, after the Department of Economic Affairs announced on Thursday that talks with international creditors on its $ 66 billion debt restructuring will be extended. The new deadline is June 2.
President Alberto Fernandez’s government expects to reach an agreement before Argentina suffers the full consequences of its default.
The crisis-ridden South American country, which has been in recession for two years, currently owes $ 324 billion, or about 90 percent of its gross domestic product. The crisis worsened when the economy was hit by the coronavirus pandemic.
Despite being one of the world leaders in food exports, Argentina has defaulted eight times before. Last in 2001 when it owed $ 100 billion. That caused a painful social and economic crisis at the time.
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