Argentina Agrees to $65 Billion Restructuring Deal With Bondholders

Argentina Agrees to $65 Billion Restructuring Deal With Bondholders

Argentina's government confirmed on Tuesday that it reached an agreement with its major foreign private creditors to restructure $65 billion in debt, a step that the economy ministry said will "grant the country significant debt relief“ and resolve its third sovereign default in two decades.

The agreement, with bondholders led by

BlackRock Inc.



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and a number of other major investment firms, enables the government to avoid a prolonged, public clash like the one that marked Argentina's 2001 default. The pact will also lend a much-needed boost to Latin America's third-largest economy, which has been hit hard by the coronavirus pandemic and is forecast to endure a significant contraction this year.



The settlement is the latest restructuring led by private lenders in the U.S. and other large economies on lending to borrowers in the developing world, whose capacity to repay large debts has been significantly eroded by the economic fallout of the new coronavirus. News that the government was nearing a deal was reported Monday by The Wall Street Journal.



Under the agreement, Argentina will change the payment dates for some new bonds, which won't lead to an increase in the overall amount of interest payable by