Argentina defaults again as debt talks progress

Argentina missed interest payments to international creditors on Friday, thrusting the economically besieged country back into default territory.
But there was cautious optimism among analysts - and the government - as talks to restructure $66bn in foreign debt appeared to be making headway. If the new deal happens, it could stave off a more dramatic financial unravelling.
The country officially extended the Friday deadline for its external debt offer to June 2 "in order to continue constructive discussions", Economy Minister Martin Guzman said in a statement. The initial offer called for a three-year grace period on payments, a 62 percent reduction in interest payments and a 5.4 percent cut to the principal. It was rejected by key groups of bondholders, who have presented counterproposals. Reuters reported that Argentina intends to amend its offer in the coming days.