Argentina is actually in a situation of default, as not paid foreign creditors $503 million of debt, the maturity of which has expired on Friday at 17:00 new York time (00:00 GMT Thursday), but will continue negotiations with holders of securities to settle debt. This was confirmed by TASS source in the government.
"We are in open negotiations with the holders of securities," he said. He said that official statements by the government or the Ministry of economy on this subject is expected.
On Friday in the Official Bulletin of the Argentine Republic published a decree extending the talks until June 2nd. "Extend the exchange offer until 17:00 new York time June 2, 2020," the document reads. It notes that "the Ministry of economy continues to analyze proposals [of investors] to recover the sustainability of public debt".
On 8 may, the government of Argentina issued a decree on the extension until may 22 period during which creditors may accept an offer of Buenos Aires on the settlement of debt. The plan, which was presented by the Minister of economy of the Republic of Martin Guzman in mid-April, provides for a three-year grace period and write-off 5.4% of the amount of debt and 62% of accrued interest – $3.6 billion and $37.9 billion, respectively. With may Argentina said it was willing to consider proposals from the creditors. Argentina’s debt to private creditors that the country is going to restructure, is $68.8 billion.
Argentina for several years can not restore the pace of economic growth and is ranked among the countries with the highest inflation. On October 27 of last year in Argentina held presidential elections, won by the center-left candidate Alberto Fernandez. He said that he finds it necessary to negotiate with creditors about deferral of payments to give the economy the opportunity to grow and to repay debt. The government of former President Mauricio Macri has also recognized that the Republic is forced to start negotiations on the conversion of the debt to the International monetary Fund (IMF).