One of the countries of South America missed


It is the ninth default in the country’s history.

One of the countries of South America missed. Photo:

Argentina was in a state of technical default after a period of payment of approximately $ 500 million for three issues of government bonds.

Earlier, the country’s Ministry of Economy reported that negotiations with international lenders on restructuring public debt of $ 66.23 billion were postponed until June 2. Argentine ambassador to the United States, George Arguello, published a letter according to which the government will not pay anything until a new agreement with creditors is reached, reports Buenos aires bar.

Note that this is the ninth default in Argentine history. Four years after returning to the capital markets, Argentina was again in the default position.

According to Argentina’s Minister of Economy Martin Guzman, the government continues to negotiate with creditors on debt restructuring. He said that all the parties want to resolve the present situation. According to information ReutersThe parties may agree in the coming days.

Guzman also pointed out that Argentina needed a reorganization of direct funds to deal with the consequences of the COVID-19 epidemic. Currently, the country’s total public debt is $ 324 billion, which is 90% of its GDP.

At the end of last year, even before the onset of the coronavirus epidemic, the Argentine government invited bondholders to write off $ 37.9 billion in interest and establish a three-year grace period with an interest rate of 0.5%.

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We previously wrote that Finance Minister Sergei Marchenko explained why there is no condition for defaults or restructuring public debt in Ukraine and emphasized that the budget situation is manageable. According to the politician, “The impartial default is a political decision, so there are no economic grounds for Ukraine’s default.”

Read: Between Gabon and Ecuador: Ukraine is on the list of weak countries in terms of debt stability

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