(Bloomberg) -- Argentina and some of its top creditors are discussing an agreement to restructure $65 billion in debt, according to people with direct knowledge of the matter.

The sides have moved closer over the weekend and are discussing a deal where creditors would receive about 54.8 cents on the dollar, or about the midpoint of the most recent offers from creditors and the Argentine government, according to three people with direct knowledge of the talks.

Fine points of the deal, including legal clauses that would limit Argentina’s ability to push through future restructurings, were still under discussion and the deal could still fall apart, the people said. Before the latest talks, the gap between the two sides’ negotiating positions had been only about 3 cents on the dollar on a net present value basis, according to Goldman Sachs Group Inc and Morgan Stanley analysts.

The Economy Ministry declined to comment. Representatives for the creditor groups did not immediately reply to a request for comment.

The agreement would mark the product of months of talks between the government and key bondholders including BlackRock Inc., Ashmore Group Plc, and Fidelity Investments, and is the first step toward stabilizing a struggling economy. Inflation hovers near 45%, the peso has lost 87% of its value since late 2015 and the economy is poised for its third straight year of recession amid a record contraction in 2020.

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