Argentina defaults on bond payments, continues debt talks

Argentina missed payments of $503 million on bond coupons on Friday, which leaves it in a virtual default, but clarified it continues negotiations with private creditors in order to reach an agreement to restructure its debt before June 2.

maturity corresponds to interest on securities under foreign law which should have been paid on April 22.

n-payment came a day after President Alberto Fernández's government extended period it gave creditors to accept an offer to restructure debt under foreign law for more than $66,000 million.

Argentine ecomist Camilo Tiscornia said as negotiations continue to change in formal classification to in default did t change too much.

Fernández government, which took office at end of 2019, formally presented its proposal to creditors in April, which implies a 62% interest rate cut - equivalent to $37.9 billion - and capital cut of 5.4%, some $3.6 billion, as well as a grace period until 2023 with an interest rate of 0.5% that will increase over time.

proposal has so far t received necessary level of herence from creditors, including substantial investment funds.

government hopes to take vant of extension of term of negotiations to approach positions with creditors based on modifications in proposals of both parties.

With ecomy in shambles after a two-month-long lockdown and over 35.5% of population in poverty, a default would make it even harder for Argentina to access much-needed credit.

Meanwhile, millions of people are struggling to put food on ir tables, and many families have come to rely on soup kitchens.

Since mandatory lockdown which started on March 20, an ditional three million Argentines have asked for food assistance, making a total of 11 million.

As of Friday Argentina has reported more than 9,900 coronavirus cases and 419 deaths, according to a tally by Johns Hopkins University.