Argentina: Covid-19 an extra headache as default deadline looms

Author: John Crabb | Published: 21 May 2020

The Argentine Republic is days away from defaulting on its almost inconceivably large sovereign debt for a ninth time, and negotiations between the country and existing creditors appear no closer to conclusion.

The country is also facing the unexpected economic stress that coping with a global pandemic brings, leading many to question exactly how the government is going to cope with its growing financial woes.

During a webcast this Tuesday economic minister Martin Guzman said: "There is a big chance that the deadline is extended so we can eventually make the amendments that are necessary in order to achieve a sustainable deal with our creditors". This is a nugget of hope, but with just days until the deadline for default, it's edge-of-the-seat stuff for anyone with a vested interest.  

The country missed its payment on April 22, setting a deadline of May 22 to complete negotiations with creditors before the...