Argentina Faces Ninth Ever Default, Extends Negotiation Deadline Again

[Image source=Reuters Yonhap News]

[Asia Economy Reporter Kwon Jae-hee] The deadline for Argentina's debt restructuring negotiations, following its ninth-ever default, has been extended once again.

On the 19th (local time), the Argentine government announced that it would extend the deadline for debt restructuring negotiations with private creditors by one more month, until the 24th of next month.

This marks the fifth extension since the Argentine government proposed a restructuring plan for $65 billion (approximately 79 trillion KRW) in debt to creditors last April.

Argentina experienced its ninth default after failing to pay bond interest on the 22nd of last month. Since then, creditors have stated they would continue negotiations instead of pursuing litigation, but the gap between the government and creditors has not narrowed, causing the negotiation deadline to be repeatedly postponed.

The original negotiation deadline was the 19th, and two out of three major creditor groups issued a joint statement expressing their willingness to continue talks. However, they recently expressed disappointment regarding the content of the negotiations with the Argentine government.

According to Bloomberg News, they criticized, "Argentina created obstacles to the negotiation progress and caused divisions," adding, "Argentina left the negotiation table just as both sides were close to reaching an agreement."

On the other hand, the Argentine government claims that "the creditors' demands are at an unbearable level."

Morgan Stanley stated in a report, "It would have been better if the negotiations had continued with more constructive remarks, but this is not the first time debt restructuring has reached a deadlock," adding, "Neither side benefits from breaking off negotiations over such differences."

This content was produced with the assistance of AI translation services.