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Give Argentina a Break

It is no secret that Argentina has a debt-sustainability problem, which is why its government has gone to such lengths to work with the International Monetary Fund on a solution. But, rather than recognizing that COVID-19 has complicated matters, Argentina's private-sector creditors continue to stand in the way.

LONDON – Last month, Argentina technically defaulted on its debt, following a 30-day grace period for the latest interest payments. Needless to say, sovereign defaults can have enormous economic and social costs. Whether Argentina will be spared the worst of them now depends critically on the negotiations that are still ongoing between the country’s government and its private-sector creditors.