The Argentine government has struck a substantial debt deal with some major creditors, saving it billions. What exactly is the deal about and could it save the ailing economy?
Argentina owes a fortune — $323 billion (€274 billion) as of the end of 2019 — which it cannot pay back. That has been the case for many years. It owes several billion to the IMF and to bondholders of various shapes and sizes all around the world, particularly in the US. The roots of its mess go back several decades.
Since the start of 2020, the country was careering toward its ninth sovereign default and the third of the last 20 years. It officially defaulted in May.
The government has been negotiating with a group of large US investment firms, led by BlackRock, to which it owes billions, in an attempt to mitigate the latest crisis. According to the Argentine government, a deal has been done.