⁍ Argentina has reached an agreement with creditors to restructure around $65 billion in sovereign debt.

---

⁍ The agreement helped lift sovereign bonds an average of 8.7% following a rally on Monday in anticipation of a deal.

---

⁍ Argentina fell into its ninth sovereign default in May and is headed for an estimated 12% economic contraction this year.

---

– Argentina has reached a deal with its major creditors to restructure around $65 billion in sovereign debt, breaking a months-long impasse that had raised fears the country would default for the first time since its 2001 default. Economy Minister Martin Guzman said at an evening press conference that the deal was key to bringing the public sector out of a “situation of asphyxia,” Reuters reports. Guzman said the deal, which will adjust some payment dates, had the support of a majority of creditors and that Argentina would look to convince any still undecided to accept it. The three creditor groups—the Ad Hoc Group, Argentina Creditor Committee, and the Exchange Bondholder Group—said they were pleased to have reached an ‘agreement in principle’ that provided debt relief and would lift Argentina’s access to international capital markets. “The economic situation in Argentina is very challenging and a key focus for us was to make sure there was sufficient cash flow for the government in the short-term to help the government address the economic fallout from issuers,” one of the creditors tells Reuters.