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Argentina’s government announced early Tuesday morning that it had reached an agreement with creditors to restructure $65 billion in sovereign debt, leading to nearly months of negotiations plagued by deadlocks and disagreements.
Existing Eurobonds in the country rose 3 cents on the new one, a construction on the profits of the last session in anticipation of an agreement.
Three teams of creditors – the Ad Hoc Group of Argentine Bondholders, the Group of Redeemable Bondholders and the Argentine Creditors Committee – will now restructure its debt and offer significant debt relief.
As recently as June, talks were stalled when Buenos Aires said it could “hold up responsibly” on terms presented through creditors.
Latin America’s third-largest economy, already in default, has left billions of bonds in default for months as its economy is hit by the coronavirus pandemic.
Rising poverty and unemployment, as well as high interest rates amid a two-year recession, have put the country some forty-five million people in a desperate monetary situation even before the virus arrived.
On 22 May, Argentina saw its ninth default on its sovereign debt after failing to pay interest payments.
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