Argentina Defuses Default Crisis With ‘Massive' Debt Deal

Argentina has defused fears of a messy default after it gained backing from creditors, allowing it to exchange 99% of the bonds involved in a $65 billion restructuring, a deal that could set a precedent for future sovereign crises, Reuters reported. After months of winding and tense negotiations, framed by the coronavirus pandemic, bondholders tendered 93.55% of the eligible bonds in the exchange, Economy Minister Martin Guzman said at a news conference on Monday. “In recent days we have worked on the conditions of an offer that gained massive acceptance by our creditors as a result of the dialogue process in past months,” Guzman said. A strong deal is a major win for Argentina, Latin America’s No. 3 economy, as it looks to escape from its ninth sovereign default and revive an economy in its third year of recession and expected to contract around 12.5% this year. Read more

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