Finally, history repeats itself in Argentina, a complex country condemned to fall into the abyss and then slowly resurface, as if it were a curse. There is no peace for Argentines who are condemned by several “plagues”: poverty, inflation, debt and the coronavirus.
As expected, the government did not pay yesterday the maturity of the debt of 503 million dollars, so it fell into default, but decided to extend until June 2 even the negotiation with the bondholders, with the intention of correcting the original offer to reach an agreement. It is therefore a controlled cessation of payments. Let’s not panic yet, at least until June.
At the end Argentina with experience in these duels, is playing hard. Negotiating until the last moment with the excuse of the pandemic. Although in the Palacio de Hacienda they still don’t want to show their cards there is supposed to be an improvement of the current offer at the last moment. Today, the trading range is 40 cents offered by the government for every dollar the bondholders invested in Argentina, against 55-60 that the creditors want.