For the ninth time in its history, Argentina has entered into default. Buenos Aires could not honor, Friday, May 22, a deadline of 500 million dollars. But negotiations for the restructuring of $ 66 billion in debt continue.

"We do not pay (the interest), but the negotiations continue," a source in the Argentine government told AFP.

On the Buenos Aires Stock Exchange, the Merval index was down 1.03% on Friday at the close. However, during the week, the stock market rose 3.99%, while discussions between the Argentine government and creditors continued.

Debt reaching 90% of GDP

The government of center-left president Alberto Fernandez seeks to conclude an agreement with the holders of Argentine bonds, without setting off "the artillery of default".

Late Thursday evening, the government had already announced to extend for the second time the deadline it had set for restructuring, by designating June 2 as the new deadline. This extension of only ten days seems to show that the Argentine government and its creditors could be close to an agreement, although the new deadline is not necessarily final, as the government said on Thursday.

"There is still a long way to go but the most important is that all parties remain at the (negotiating) table to find a solution," said Argentine Minister of Economy Martin Guzman on Friday.

The extension of the discussions "offers flexibility in the event that (Argentina) decides in the coming days on the modifications (of its proposals) to reach a sustainable agreement with our creditors," underlined Martin Guzman.

The negotiations were originally scheduled to be completed no later than May 8, but, in the absence of an agreement, they had been extended until Friday, when payment of $ 500 million in interest was due.

In total, Argentina's debt reaches $ 324 billion, or almost 90% of its GDP.

With AFP

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