BUENOS AIRES, June 1 (Reuters) - Argentine debt would be sustainable under the government’s latest bond restructuring proposal, and the recession-racked country has “limited” room to improve the offer, the International Monetary Fund said in a statement on Monday.
The government, which fell into default in May, is negotiating the revamp of about $65 billion in what it has labeled unsustainable bonds. Talks with creditors are going down to the wire of a Tuesday deadline for reaching a deal. The market expects the government to postpone the deadline.
“Argentine authorities’ revised debt restructuring proposal would be consistent with restoring debt sustainability with high probability,” the IMF statement said.
“IMF staff’s assessment further suggests that there is only limited scope to increase payments to private creditors and still meet the debt and debt service thresholds,” it said.
Reporting by Hugh Bronstein in Buenos Aires Editing by Matthew Lewis