Argentina formalises debt repayment deferment with Paris Club

Argentina has reached a deal with the Paris Club to postpone payments on more than US$2 billion of debt owed to the group of wealthy nations for more than two years.

Announced by government decree, the news formalises an agreement announced in March on the final repayment of a debt renegotiated in 2014.

Payments to creditor countries will be deferred until September 30, 2024, or until "there is a new framework agreement" to replace the original deal signed eight years ago, read a notice in Tuesday's edition of the Official Gazette.

The country will be able to make partial repayments to Paris Club nations before that date, depending on the government's fiscal capacity and in proportion to those made to other creditors, the statement said.

The government of President Alberto Fernández is negotiating with each of the individual creditor countries and Paris Club authorities as a whole to come up with a new reimbursement programme.

Argentina had already secured two extensions for its US$2.45-billion debt, the latest of which was due to expire on Friday. The deal marks the culmination of talks that began last March, when the government agreed to pay US$430 million to the group to avoid default.

The extension grants the country further breathing room as it tries to meet fiscal targets outlined in its US$44.5-billion agreement with the International Monetary Fund.

In March, Paris Club president Emmanuel Moulin praised Argentina's agreement with the IMF, saying it is designed to strengthen the country's "macroeconomic stability and stimulate inclusive economic growth.”

– TIMES/AFP/BLOOMBERG