Thursday, May 13, 2021
34.2 C
Abuja
Thursday, May 13, 2021

Argentina misses deadline on international debt agreement

Must read

Clubhouse for Android hands

Clubhouse arrived almost a year late to Android, and that might be the downfall of the talk-focused social network aiming to start in-depth and...

FG seeks revenue growth from bitumen, barite, gold

As revenue from oil nosedives following incessant global price fluctuations, the Federal Government is now channelling efforts to the development of minerals in the...

Inflation fears rise as US consumer prices surge

Prices US consumers pay for goods and services surged 0.8 percent last month, the largest monthly jump in a decade.A worrisome bout of inflation...

Argentina missed a Friday deadline to reach an agreement with international creditors to restructure its massive debt, but negotiations will continue, its minister for the economy said.

The two sides have been deadlocked over Argentina’s $65 billion debt, with the three main bondholder groups rejecting a government restructuring proposal, saying they were unwilling to swallow “disproportionate” losses on their investment.

“Argentina is maintaining a dialogue,” economy minister Martin Guzman told reporters on Friday.

A 30-day grace period for a $500 million bond payment that Buenos Aires has already missed expires on May 22.

Guzman has taken an aggressive stance on debt, in part driven by a need to free up resources to fight the novel coronavirus pandemic in the recession-hit South American grain and beef exporter.

He said this week that his government, though willing, “does not have the capacity to pay.”

A senior government official who requested anonymity told AFP the country would face a difficult 10 days, but that Buenos Aires was “optimistic” about reaching an agreement.

“We will do everything we can (to find a solution) without mortgaging the present and the future of the Argentines,” he said.

Buenos Aires’ offer to its creditors includes a 62 percent discount on interest, or $37.9 billion, and 5.4 percent on capital, or $3.6 billion. The country is also requesting a three-year moratorium, which would imply no payments until 2023.

Failure to pay would mean a default, a near doomsday scenario for the cash-strapped country that would prevent the government from seeking credit from the financial markets.

Argentina – in recession for two years — has also been in lockdown since March 20, further damaging its already battered economy.

AFP

DOWNLOAD THE PUNCH NEWS APP NOW ON


- Advertisement -

More articles

LEAVE A REPLY

Please enter your comment!
Please enter your name here

- Advertisement -

Latest article

Clubhouse for Android hands

Clubhouse arrived almost a year late to Android, and that might be the downfall of the talk-focused social network aiming to start in-depth and...

FG seeks revenue growth from bitumen, barite, gold

As revenue from oil nosedives following incessant global price fluctuations, the Federal Government is now channelling efforts to the development of minerals in the...

Inflation fears rise as US consumer prices surge

Prices US consumers pay for goods and services surged 0.8 percent last month, the largest monthly jump in a decade.A worrisome bout of inflation...

Nigeria Diaspora remittances declined by 27.7% to $16.8bn – World Bank

Remittances by Nigerians in the Diaspora declined by 27.7 per cent in 2020, the World Bank has said. A report by the World Bank titled...