The Argentinian government had previously extended the deadline for finding an agreement on the rescheduling of its debts to May 22. Altogether, Buenos Aires wants to reschedule $ 68 billion in loans, but the proposal was rejected by most of the private creditors last month. By buying extra time, the Argentine government hoped to avoid an official default.
The creditors did not agree to the debt restructuring proposal because they believed that there were “unnecessary and disproportionate” losses. The proposal for a three-year moratorium was also unacceptable to creditors. But the government insisted, saying it’s the furthest it can go.
Argentina is in a severe economic crisis. The International Currency Fund (IMF) recently called Argentina’s debt ($ 323 billion or more than 90 pc of GDP, ed.) Unsustainable.