Argentina’s government is resuming negotiations in a dispute with U.S. creditors that risks sending the country into default this week.
Cabinet Chief Jorge Capitanich said Monday that an Argentine delegation will travel to New York and meet a court-appointed mediator there on Tuesday.
Argentina will default for the second time in 13 years if it cannot reach a deal with the U.S. hedge funds over some $1.5 billion in unpaid debts before a July 30 deadline.
The creditors are hedge funds that bought Argentine bonds on the cheap and rejected Argentina’s restructuring offers following its record $100 billion default in 2001.
The looming default comes as Argentina’s economy struggles with a recession, a shortage of dollars and one of the world’s highest inflation rates.