Buenos Aires – Dr.
Posted on: Tuesday 28 July 2020 – 10:50 PM | Last update: Tuesday 28 July 2020 – 10:50 PM
International creditors intensified their pressure on Argentina to accept their proposal to schedule its debts, and said that they support investors retaining most of Argentina’s foreign debt.
Creditors reject Argentina’s final offer to reschedule $ 65 billion in debt, and defended their proposal in a letter to Argentine Economy Minister Martin Guzman.
According to the letter released on Tuesday, three groups of Argentina’s main creditors were sent on July 20.
The creditors ’proposals are supported by groups of them owning about 60 percent of Argentina’s foreign currency bonds and 51 percent of its total international bonds.
The Argentine government announced earlier this week that it had rejected the international creditors’ proposal, and the Economy Ministry in Buenos Aires said on Saturday that the new requests could not be met.
“It will not only be irresponsible, but also unfair,” the ministry said in a statement.
If no agreement is reached, the country threatens again bankruptcy, and it will be the ninth time that the country has defaulted on payments in Argentine history.
Lenders recently called for raising interest rates on government bonds and for changes to some contractual terms. However, the Argentine government is sticking to its latest offer and is not prepared to make any further concessions.
Argentina is facing a serious financial and economic crisis, and the inflation rate has increased by more than 50% recently.
Experts expect the economy to decline this year by about ten percent.
At the end of May, Argentina failed to pay $ 503 million in interest, resulting in payments defaulting.