Economy

Debt talks: Argentina gets IMF endorsement

IMF argues that there's a little scope for the country boosting the debt offer

The Argentine economy minister Martín Guzmán
The Argentine economy minister Martín Guzmán. Photo: Screenshot/Martín Guzmán/Twitter
  • The Argentinean government has set Tuesday as the deadline for a deal to revamp about $65 billion;
  • IMF considers that the most recent bond revamp proposal would set the country on sustainable debt management.

Argentina is coming close to a deal with bondholders after defaulting on its sovereign debt for a ninth time. The country received the IMF’s backing, ahead of restructuring deadline looms, according to Reuters.

The IMF has said in a statement that the government’s most recent bond revamp proposal would set the country on a sustainable debt management path and Argentina had little room to improve its offer. According to the media outlet, Argentinean government has set a Tuesday deadline for a deal to revamp about $65 billion in bonds rendered unsustainable by a long recession and currency plunge.

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“IMF staff’s assessment further suggests that there is only limited scope to increase payments to private creditors and still meet the debt and debt service thresholds,” the international organization said. Argentina’s current proposal includes a two-year suspension of debt payments, which creditors would like to see shortened.