Argentina rejects improved offer from investors

The US Securities and Exchange Commission is the interface in the Argentine debt dispute.
Picture: dpa

The indebted country describes it as irresponsible and unjust towards its impoverished population to meet the demands of the creditors. If there is no solution, the state is threatened with bankruptcy – not for the first time.

I.In a dispute over a debt haircut that has been going on for months, the Argentine government has rejected the latest counter offer from creditors. The Ministry of Economic Affairs in Buenos Aires announced on Saturday that the new demands could not be met. “That would not only be irresponsible, but also unfair,” said a statement. “While 50 percent of children in Argentina live in poverty, we cannot increase the short-term profits of our creditors.”

The debt of the second largest economy in South America is no longer sustainable under the current conditions. Argentina is therefore demanding that its private creditors waive part of their claims of around $ 66 billion (around € 59 billion). If no agreement is reached, the country threatens to go bankrupt again. It would be the ninth default in Argentine history.

Lenders recently called for higher government bond interest rates and changes to some contractual clauses. However, the Argentine government is sticking to its last offer and is not prepared to make any further concessions.

Argentina is in a serious financial and economic crisis. The inflation rate was more than 50 percent recently. For the current year, experts expect the economic power to decline by around ten percent. At the end of May, Argentina had failed to pay $ 503 million in interest claims, causing it to default in payments.

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