While Argentina is not facing a Covid-19 chaos close to what we have seen in Brazil and Ecuador, the country is mired in yet another financial crisis. On May 22, for the ninth time in its history, Buenos Aires failed to pay interest on its federal debts and began a 30-day countdown to another default.
According to President Alberto Fernández, however, nothing really changed on Friday, as the country “has already been in default for months,” blaming the press for ignoring the story and only writing about it now. Indeed, Mr. Fernández’s comments hold water, as Argentina’s latest default is the result of a debt snowball that dates back decades. Last week’s unpaid USD 503 million comes from bonds issued in 2016 by then-President Mauricio Macri, in an attempt to write off another, larger debt.
In all, settling prior liabilities will cost almost USD 69 billion to Argentina’s public coffers. President Fernández is trying to convince creditors to accept new terms of renegotiation.