BUENOS AIRES (Reuters) – Argentina will present an amended bond restructuring offer to U.S. regulators on Thursday or Friday, a source at the economy ministry told Reuters on Monday, as the government pushes forward with restructuring about $65 billion in sovereign debt.

The source asked not to be named because the restructuring talks are private, and highly sensitive as the country struggles to calm markets while negotiating new terms with bondholders.

Argentina is facing a grim economic picture after defaulting on its sovereign bonds last month.

Gross domestic product is seen shrinking 9.5% in 2020, according to a poll of analysts by the central bank released on Friday, versus an estimated 7% decline in the bank’s previous monthly survey, as activity gets walloped by a nationwide lockdown that started March 20 to fight the coronavirus pandemic.

Striking a bond restructuring deal is key for the country to avoid years of legal battles with creditors and a potential shutout from global capital markets, as happened after a major default by the crisis-prone country in 2001.

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