BUENOS AIRES, May 11 (Reuters) - Argentina said early on Monday that it would extend negotiations over a $65 billion debt restructuring proposal until May 22 after an initial deadline passed on Friday without the support for a comprehensive deal the country needs to avert default.
The South American grains powerhouse announced the extension in the official gazette, adding that the results of the offer would be announced on May 25 with a settlement date of May 27.
Argentina is racing to revamp unsustainable debts amid a painful economic recession, high inflation and increasingly expensive borrowing costs as concerns over a potential ninth sovereign default have rattled investors and hit bond prices.
The talks have however not been simple, with three major creditor groups rejecting the initial proposal and pushing for improved terms. Argentine officials have said the country cannot afford to pay more, though they are open to counterproposals.
Argentina also faces the end of a 30-day graced period on a $500 million bond interest payment on May 22, which would tip the country into technical default. (Reporting by Adam Jourdan; Editing by Toby Chopra)