• The Financial District


Argentina defaulted on Friday, May 22, 2020, for the second time in less than 20 years after failing to pay $500 million of interest on its bond debt, Finance Minister Martin Guzman said, but it continues to negotiate a restructuring of its debt with creditors. "There is still a significant distance to go but, more importantly, all sides remain at the table to find a solution," he added.

The default -- Argentina's ninth overall -- was widely expected after the economy ministry announced on Thursday that it was extending, for a second time, talks with international creditors on restructuring $66 billion of its debt. The new deadline is June 2, the May 23, 2020 report of Agence France Presse (AFP) said.

President Alberto Fernandez's government is expecting to come to an agreement before Argentina suffers the full effects of its default.

Thursday's announcement of the extension "provides flexibility in case the Republic decides to make modifications in the coming days to ensure a sustainable agreement with our creditors," Guzman said. The crisis-wracked South American country, which has been in recession for two years, currently owes $324 billion, amounting to around 90 percent of its gross domestic product (GDP).