Argentina was facing a third year of recession in 2020 even before the coronavirus hit. Now with the pandemic’s economic shock, some analysts foresee a record contraction in the crisis-prone country, Bloomberg News reported. One of the most pessimistic estimates is from Marcos Buscaglia, co-founder of Buenos Aires-based consulting firm Alberdi Partners and former chief Latin America economist at Bank of America Corp, who sees activity shrinking 13%. Yet, forecasts for a near double-digit decline aren’t outliers.

The fiscal fallout of the coronavirus pandemic and low oil prices could affect Colombia for several years, Richard Francis, director of sovereign ratings at ratings agency Fitch, said on Tuesday, Reuters reported. Colombia’s government predicts the usually healthy economy will contract 5.5% this year. The country has suspended its fiscal deficit limits for 2020 and 2021 and issued billions in bonds as unemployment rises and businesses close during a months-long quarantine.

Argentina will release its first quarter GDP and unemployment figures today, amid the negative economic effects of the COVID-19 pandemic and uncertainty produced by debt restructuring negotiations, Foreign Brief reported. The COVID-19 crisis has ravaged Argentina’s already ailing economy. After a 1.1% year-on-year contraction in the fourth quarter of 2019 and declining economic activity during the first two months of 2020, the pandemic has deepened the country’s recession and exacerbated its troubled fiscal position.

Argentina extended a deadline for bondholders to accept a debt restructuring proposal for a fifth time as creditors blamed the government for “walking away” from talks, Bloomberg News reported. Bondholders now have until 5 p.m. New York time on July 24 to accept Argentina’s debt proposal, according to a government statement. It said officials plan to use the extension to keep talking with investors.

Argentina’s dollar-denominated bonds slipped to their lowest level in three weeks after restructuring talks stalled amid growing animosity between officials and some of the country’s top creditors, Bloomberg News reported. The bonds, which had rallied over the past month on optimism creditors and the government were nearing a deal, fell after the two sides said they were at an impasse. Dollar bonds due 2026 dropped 2 cents to 37.7 cents on the dollar as of 8:49 am New York time, their lowest level since May 28.

Argentina’s debt restructuring talks, in a tense final stretch, hit a roadblock on Wednesday with the government determined not to cede further ground after making an improved offer and a key creditor group warning that negotiations had failed, Reuters reported. An Economy Ministry source told Reuters the country was sticking by its latest proposal with a net present value of around 50 cents on the dollar and warrants linked to Argentina’s farm-driven exports. The offer was shared with creditors during recent talks.

LATAM Airlines Group said on Wednesday its Argentine subsidiary will cease operations indefinitely, canceling all domestic flights, its first major cutback since filing for bankruptcy protection, Reuters reported. The announcement fell short of saying the company, Latin America’s largest airline, will entirely wind down its subsidiary, although it is unclear if it will ever resume operations. A LATAM spokesman said the subsidiary will begin a government process in Argentina before it can lay off 1,715 employees.

Antonio Barbosa had hoped to find new employment when the bakery he worked at in São Paulo fell victim to Brazil’s prolonged economic slump, the Financial Times reported. Then the coronavirus pandemic struck, all but killing off the 41-year-old’s hopes of finding work and leaving him sleeping on the streets. “I fear things will not get better in this country, so I will never have a job again,” he said. His plight reflects the enormous challenges confronting Latin America’s largest economy.

Brazilian telecoms firm Oi SA announced late on Monday a proposed plan that, if approved by creditors, would allow the company to exit a long bankruptcy restructuring process that began in 2016, Reuters reported. Under the plan, Oi hopes to sell its mobile unit for at least 15 billion reais to refocus the company on its fiber network. Brazil’s largest fixed-line carrier had approximately 65 billion reais ($12.65 billion) of debt when it filed for bankruptcy protection.

Farmers are lobbying against the Argentine government’s proposal to sweeten an offer on its overseas debt with payments tied to agriculture exports, Bloomberg News reported. Economy Minister Martin Guzman, who’s leading talks to restructure $65 billion of foreign debt, has put the idea on the table, though some creditors favor coupons linked to economic growth.