Jorge Argüello, Argentina’s ambassador to the United States, confirmed the country’s non-payment and, therefore, its entry into “technical default”

The Argentine government entered today into “technical default” before the non-payment of three interest coupons, generated by the foreign debt with private bondholders, which amount to $ 500 million.

Jorge Argüello, Argentine ambassador to United States, confirmed the country’s non-payment and, therefore, its entry into “technical default”, although it stressed that the debt restructuring negotiations with the creditors still continue.

Local media highlighted that although the government reported that the deadline to reach a agreement with creditors would extend until June 2, the lack of “some of the payments” of interest on the debt of $ 66 billion, led the country to technically fall into its third default in less than 20 years.

The Argentine newspaper The clarin stresses that Argentina has “up to date” many bonds on its foreign debt, so it is not yet in default on the sovereign debt; however, to avoid paying interest on all its debt, the country must reach an agreement with creditors.

This newspaper indicates that if an agreement is not reached, the government of Alberto Fernández must pay 572 million dollars to bonitas on June 30, with an extension until July 30, to avoid default.

The debt bonds, issued under foreign law, were issued on April 22, 2016, during the first months of the presidential mandate of Mauricio Macri, with the objective of exiting the default of 2002.

With information from Notimex