Argentina reports debt restructuring deal with creditors

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A homeless man sleeps in front of a store at the financial district during a government-ordered lockdown to curb the spread of COVID-19 in Buenos Aires, Argentina, Thursday, May 21, 2020. Friday is the deadline for Argentina to reach an agreement with its bondholders about a restructuring of the debt. If bondholders do not accept the Argentine offer or the country does not pay interest due May 22, Argentina will default on its debt for the ninth time in its history. (AP Photo/Natacha Pisarenko)

BUENOS AIRES, Argentina (AP) — Argentina’s government said Tuesday it has reached agreement with its principle creditors to restructure more than $65 billion in foreign debt following seven months of negotiations and shifting deadlines.

The government of President Alberto Fernández said the deal means “significant debt relief,” adjusting the dates of payments without raising the total amount of capital and interest to be paid.

It said it also improved on the government’s previous offer to creditors.

The government said it reached the debt exchange agreement with the Ad Hoc Argentine Bondholder Group, The Argentina Creditor Committee and the Exchange Bondholder Group, among others.

Argentina formally defaulted on its debt obligations earlier this year for the second time in two decades. The country’s economy was struggling even before the COVID-19 pandemic struck.

Copyright 2020 The Associated Press. All rights reserved. This material may not be published, broadcast, rewritten or redistributed.

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