Argentina rejects creditors' offer, says it would cause 'anguish'

Argentina's government said on Monday it could not accept a joint counterproposal from the country´s three main creditor groups to revamp around $65 billion in foreign debt, saying the deal would only lead to more "anguish" for Argentines.

The two sides are racing to reach an agreement ahead of an Aug. 4 deadline, looking to avoid a messy and protracted legal standoff after recession-hit Argentina slipped into default in May.

"Accepting what some creditors ask for would mean subjecting Argentine society to more anguish," Economy Minister Martin Guzman said in a statement responding to the creditors offer earlier on Monday. "It would imply, for example, adjusting pensions, and we will not do it."