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ECONOMY | 28-06-2023 12:12

15 down, 1 to go – Argentina inks Paris Club debt agreements with three more nations

Argentina signs three new accords to finalise restructuring of near-US$2-billion Paris Club debt; Agreements now inked with 15 out of 16 member nations, Japan only remaining holdout.

Economy Minister Sergio Massa has signed three new agreements with members of the Paris Club group of wealthy creditors to finalise the restructuring of around US$2 billion in debt.

The accords, inked with permanent Paris Club members Spain, France and Sweden, means that Argentina has agreed deals with 15 out of the group’s 16 members. Buenos Aires is still seeking a fresh deal with Japan, the only remaining holdout, with negotiations ongoing.

Argentina's negotiations with the Paris Club, over a debt of just under US$2 billion, had dragged on for years before Massa announced in October 2022 that a restructuring deal had been agreed. At the same time, the country has been engaged in parallel negotiations with the International Monetary Fund for a new financing programme. 

Within the Paris Club, renegotiation of existing debts are agreed as an institution, though bilateral agreements are signed individually with specific nations.

Tuesday’s formal signing ceremony was attended by the ambassadors of Spain (María Jesús Alonso), France (Claudia Scherer-Effosse) and Sweden (Anders Carlsson). Deals have already been reached with Italy, Belgium, Switzerland, the Netherlands, Germany, Canada, Israel, Finland, Austria, Denmark, the United States and the United Kingdom.

Massa said in a statement that "these agreements will make it possible to guarantee the sustainability of the debt profile and thus sustain the economic recovery.”

He said the agreements "as part of the macro-economic organisation process that will allow both the public and private sectors to obtain financing for the development of important infrastructure projects that will increase the competitiveness of the national economy, while promoting exports of regional goods and services.”

Massa said Argentina is “fulfilling an important goal in our roadmap to order and regularise the macroeconomic order of the country's economy.”

Under the new terms, Argentina will adjust earlier repayment agreements and "clear the remaining debt in arrears due to the Paris Club creditors over a six-year period" of 13 semi-annual instalments, the group said in a statement. 

The last payment is due in September 2028. 

 

– TIMES/NA

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