Argentina has defused fears of a messy default after it gained backing from creditors, allowing it to exchange 99 percent of the bonds involved in a $65 billion restructuring, a deal that could set a precedent for future sovereign crises, Reuters reported. After months of winding and tense negotiations, framed by the coronavirus pandemic, bondholders tendered 93.55 percent of the eligible bonds in the exchange, Economy Minister Martin Guzman said yesterday. “In recent days we have worked on the conditions of an offer that gained massive acceptance by our creditors as a result of the dialogue process in past months,” Guzman said. A strong deal is a major win for Argentina, Latin America’s No. 3 economy, as it looks to escape from its ninth sovereign default and revive an economy in its third year of recession and expected to contract around 12.5 percent this year.
