(Bloomberg) -- Argentina is looking to modify its debt offer as fluid talks with key creditors continue, according to its Economy Minister.
Counteroffers submitted by bondholder groups are better than their original proposals, yet still far from what the country considers sustainable, Economy Minister Martin Guzman said in an interview on Friday. The government has yet to determine when it will present its improved offer, he said.
The country fell into its ninth default Friday after failing to make a payment worth about $500 million. Argentina extended the deadline for creditors to consider its debt restructuring offer until June 2 as both sides need more time to reach a deal.
Key creditor groups have committed not to demand immediate repayment on debt, a process commonly known as acceleration, Guzman added.
“Our intention is to amend the offer based on the negotiations, so that it has a structure compatible with the restrictions we face, as well as the bondholders’ preferences and objectives,” Guzman said in an interview at the Economy Ministry in downtown Buenos Aires.
Read More: Argentina’s Stumble to Default Caps Brutal Four-Year Decline
Argentina had previously demanded a three-year moratorium on payments, sharp cuts to interest rates and a reduction in the principal owed. After two months of negotiations and a deadline extension to May 22, the government and its biggest creditors couldn’t reach a deal. People familiar with the matter said there was a gap of about 20 cents on the dollar between what the government was offering and what creditors want.
The country remains flexible on all aspects of the deal, said Guzman, with value recovery instruments known as sweeteners still on the table as a possible option.
©2020 Bloomberg L.P.