This archive report was first published on 24 May 2020.
Argentina's debt crisis deepened on May 22, 2020, as the country failed to reach an agreement with its major creditor groups, leading to its ninth sovereign default.
According to a statement by the Exchange Bondholder Group, which represents 15% of Argentina's exchange bonds, their counter-proposal submitted on May 15 provides 'significant debt relief to Argentina and beyond doubt provides a sustainable debt structure for Argentina in respect of Exchange Bonds.'
Argentina's government had approached the group and other creditor representatives about signing a non-disclosure agreement 'in contemplation of engaging in negotiations,' a source close to the negotiations revealed.
Despite missing the deadline, talks between the government and creditor groups could reach a breakthrough 'in a matter of days,' the source added.
Argentina's default on $500 million in bond payments marked a significant setback for the country, which is struggling to restructure its massive foreign debt of $65 billion.
