Argentina says it struck deal with creditors over $65 billion debt

Argentina and its largest creditors struck a deal to restructure $65 billion of debt, setting the stage for the South American nation to emerge from its third default since the turn of the century.

The government said in a statement Tuesday that the deal with key creditors would provide “significant debt relief” and that interest and capital payment dates for some new exchange bonds were moved forward to reach the agreement. While the statement didn’t provide a net-present value for the agreement, people with direct knowledge of the matter said the deal is worth about 54.8 cents on the dollar.

The agreement is the product of months of talks between the government and large investment firms including BlackRock Inc., Ashmore Group Plc, and Fidelity Investments, and is the first step toward stabilising a struggling economy.