Argentina’s $65B debt deadline lapses

buenos aires — Argentina will keep pushing for talks with creditors even as a deadline for its $65 billion debt restructuring proposal passed on Friday with little sign it had the support needed from international bondholders to unlock a comprehensive deal.

Economy Minister Martin Guzman told Reuters that Argentina “remains open to dialogue” and that it would reassess its position after the deadline, which expired at 6pm (2100GMT) in Buenos Aires.

Argentina faces a race to restructure what it says is an “unsustainable” debt pile and avoid slipping into a ninth sovereign default that would revive memories of an acrimonious decade-long standoff with creditors after a default in 2001-02.

“We will assess the situation after the offer expires today and we will continue working to achieve the goal of restoring debt sustainability to put the county back on its feet,” Guzman said in messages sent to Reuters. If creditors have ideas that suit them better while respecting the constraints that Argentina faces, then “we are ready to listen”, Guzman added.

“Any combination of interest or principal reduction, grace period, and extension of maturities that is aligned with the debt sustainability analyses of Argentina’s government and the IMF will be considered.”

Major bondholder groups have balked at Argentina’s proposal to impose big cuts in coupon payments, allow a three-year payment hiatus, and push back maturities into the next decade. The offer was unveiled in the middle of last month.

“There clearly needs to be some upfront cash flow relief but this doesn’t necessarily rationalize three years of no payments,” Siobhan Morden, head of Latin America fixed income strategy at Amherst Pierpont Securities, said in a note.

Guzman indicated to local media that the country was to announce the next steps in the process on Saturday. —