Argentina has defaulted on its sovereign debt for the ninth time. The government has invited Exchange Bondholder Group, a major creditor group to discuss the terms of the debt deal and the group has confirmed that they have been invited to sign a non-disclosure agreement.

As per economic data available, the Exchange Bondholder Group currently represents 15 percent of Argentina’s exchange bonds. The Ministry of Economy is ready for negotiation with creditors, as per local media reports. Argentina failed to reach an agreement with creditors before the May 22 deadline to resolve the impasse. The government missed to make the payment for $500 million in already delayed bond coupons.

The government had earlier rejected the proposal for restructuring of USD 65 billion foreign debt. As per a report published by Reuters, executives from major credit agencies were optimistic Argentina would eventually strike a deal, but warned that the country’s economic woes were far from over.

While commenting on the default, President Alberto Fernandez said, “I read in the newspapers that we are in danger of falling into default tomorrow [Friday] and I ask myself why they lie like this. We have been in default for months, before December even we were in default, only they do not write that, they just hide it.”

Todd Martinez, director of Latin America sovereigns at Fitch Ratings said, "Should it be a default without signs of progress toward a resolution, it could heighten uncertainties and have some destabilizing effects, but these could be minimal if recent progress towards a deal continues."