Recession-hit Argentina on Monday officially presented its offer to the US Securities and Exchange Commission (SEC) to restructure a $66 billion debt under foreign legislation, the government said.

It follows the passing of a law on Sunday officially approving the deal reached two weeks ago with three major creditor groups following months of strained negotiations and several missed deadlines.

The deal reached on August 4 is worth 54.8 cents on the dollar, a significant increase on Argentina's original offer of 39 cents.

According to the documents presented to the SEC, Argentina has "extended the invitation deadline" for the accession agreement to August 28 from August 24.

"The Republic encourages all investors to consider the revised terms and conditions of the Invitation and join the Republic to create a sustainable path for the recovery of the Argentine economy," said the economy ministry in a statement.

Argentina has already secured the support of the Ad Hoc, Argentina Creditor Committee and Exchange Bondholder groups, as well as other significant bond holders.

Argentina's Economy Minster Martin Guzman has led the tough negotiations with creditors to restructure the $66 billion debt
Argentina's Economy Minster Martin Guzman has led the tough negotiations with creditors to restructure the $66 billion debt AFP tv / -

Last month those three main creditor groups claimed to represent "60 percent of the exchange bonds and 51 percent of the global bonds in circulation."

The bonds represent roughly a fifth of the country's $324 billion debt, which amounts to around 90 percent of its GDP.

Argentina is in the midst of an economic crisis and has been in recession since 2018.

It has been in default -- for the ninth time in its history -- since May 22 when the country missed a deadline to pay $500 million in interest on the debt that is subject to the current negotiation.

It missed another deadline three weeks ago to pay $600 million more.

Its troubles have been exacerbated by the coronavirus pandemic and more than a third of the 44 million population live in poverty.

Inflation stands at 40 percent and the International Monetary Fund expects Latin America's third largest economy to shrink by 10 percent this year.

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