On May 11, Argentina announced the extension of negotiations over its $65 billion debt restructuring proposal until May 22 to “increase participation”. The extension sets the stage for tense last-ditch talks as Argentina races to avoid default.

The new deadline (previous passed without the support needed for a comprehensive deal), means the offer will expire the same day Argentina could trigger default over a  $500 million interest payment. Please refer to previous post of April 2020.

Argentina is racing to revamp unsustainable debts amid a strong recession, high inflation, and increasingly expensive borrowing costs as concerns over a potential ninth sovereign default have rattled investors and hit bond prices.The talks so far have not been easy with 3 major creditor groups rejecting the initial proposal and pushing for improved terms. Argentine officials have said the country cannot afford to pay more but they are open to counterproposals. To be continued…