LONDON / BUENOS AIRES Argentina has reached an agreement with creditors to restructure around $ 65 billion in sovereign debt, breaking a deadlock in talks that will help the country out of default and remove fears of a damaging legal confrontation and dragged on.
The Ministry of Economy said in a statement https://www.argentina.gob.ar/sites/default/files/press_release_roa_2.pdf on Tuesday that it had reached an agreement with the main creditors after agreeing to adjust some payment dates and legal clauses to sweeten what had been touted as his "final" proposal made in early July.
A deal will help overwrite memories of Argentina's last major default in 2001-2002, which led to more than a decade of litigation and made it a pariah in world capital markets.
"Early this morning, we finally reached an agreement and took a decisive step," Economy Minister Martin Guzmán said at a nightly press conference, adding that the agreement was key in getting the public sector out of a "situation of suffocation".
He said that the agreement had the backing of most creditors, and that Argentina would seek to convince anyone who had not yet been decided.
Argentina, one of the main grain producers and one of the richest countries in the world, fell in its ninth sovereign default in May and is heading for an estimated economic contraction of 12% this year following two years of recession.
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