Argentina suspends payment of debt and interest for 3 years

Buenos Aires – (dpa)


Published in :
Friday, April 17, 2020 – 3:21 a.m.
| Last updated :
Friday, April 17, 2020 – 3:21 a.m.

The Argentine government plans to reduce its debt to foreign creditors, as it faces a severe recession amid the pandemic of the emerging Corona virus.

Argentine Economy Minister Martin Guzman said on Thursday that the payment of both debts and interest payments would be deferred for a period of three years.

In total, Argentina wants to restructure $ 68 billion in loans, and the restructuring proposal will be formally presented to creditors Friday.

Beginning in 2023, the government then wants to resume and increase interest payments step by step.

“Obviously, Argentina cannot pay anything at the moment,” added Guzmán.

Argentina faces a serious economic crisis, and suffers from inflation of the state apparatus, low industrial productivity and the size of the shadow economy, which deprives the state of tax revenues.

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