BUENOS AIRES, July 29 (Reuters) – Argentina’s government is considering pushing back a deadline for creditors to respond to its foreign debt restructuring proposal until mid-to-late August, a source close to the negotiations told Reuters on Wednesday.

The cut-off for the $65 billion deal is currently Aug. 4, though the two sides are at an impasse over the value and legal terms of the final offer, with a large group of creditors rallying behind a counter proposal.

The debt deal is key for recession-hit Argentina to avoid a protracted and messy legal standoff with creditors after tumbling into default in May on its foreign debt.

“It is possible (the date could be delayed),” the person said. “It could go even until the end of August. Although there is also talk of around a 15-day delay.” (Reporting by Jorge Iorio Writing by Adam Jourdan; Editing by Tom Brown)

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