Argentine reaches a deadlock with creditors over debt restructuring talks

Argentina’s debt restructuring talks appear to have hit a stalemate, amid escalating tensions between government officials and international creditors.

The South American country and the “Ad Hoc” bondholder group, which consists of 13 international asset managers and is by far the largest creditor group to Argentina, both published statements late Wednesday effectively accusing one another of refusing to cede ground in order to reach a deal.

Argentina’s government said that it could not “responsibly commit” to the terms offered by creditors, adding some of which were “largely inconsistent with the debt sustainability framework necessary for Argentina to restore macroeconomic stability and make progress towards a program with the IMF.”

“Furthermore, the negotiation process with our investor community has revealed that investor demands frequently diverge and cannot be readily reconciled.”