Government agreed with the Paris Club Debt repayment deferred until September 30, 2024. As part of the understanding on which the Minister of Economy, Martin Guzman, is working, a new mechanism for the payment of obligations is being considered. DNU 286 was published this Tuesday.
Payments are deferred until the end of September 2024 or until a new agreement is reached With the creditors of that group of countries, “The thing that happens first”refers to the text of the decree signed in the General Agreement of Ministers.
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DNU . has been published When the previous “time bridge” endsreached last March, and will give the Ministry of Economy more time to negotiate with the Paris Club on the new terms of interest rates and terms and consolidation of the 430 million US dollars already paid in two installments in February 2022 and July 2022. 2021, according to information received from blame agency.
In addition to the 2024 deadline to continue negotiating, The government promised to make partial payments for about 40 public institutions of various creditors (Spain, UK, USA, Germany, among others) in “a equivalent amount Under other bilateral commitments with third countriesAs with China, for example.
More time for a new agreement with the Paris Club
Besides the maximum technical term for negotiation until 2024, Guzmán will seek to close a technical understanding Debt restructuring of $2.2 billion In the coming weeks. As much as he can say TContacts with the agency have already begun and the intention is to announce them before the end of next June.
It seeks to start paying only in two years and get Significant decrease in the interest rate to between 1.5% and 2% The maximum, which is so far 9% per year.
After the agreement with the International Monetary Fund last March, which was a condition to proceed with the restructuring with the Paris Club, Guzmán traveled to France to search for refinancing From what is worthy of that body.
What is the Paris Club?
The Paris Clubentity Key in the history of Argentina’s debtas an “informal group of creditors”, among whom are many of the most powerful countries on the planet that also constitute a board of directors International Monetary Fund (IMF). Failure to fulfill the obligations prescribed with this body means Falling into default.
All countries 22 which currently contains They represent about 60% of the global GDP. For certain discussions or negotiations, other countries may participate as guests, including Argentina.
In 2014, the then Minister of Economy Axel Kisilo It has acknowledged a debt of more than $9,000 million, without capital reduction or punitive interest, which the state has promised to pay in five annual installments, most recently in 2019, for two years.
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The credit should have been canceled in May 2020, but with the coronavirus pandemic declared and private creditors negotiating, Argentina warned it would benefit from an additional year extension for payment. The last installment is $2.4 billion.
In February, Argentina made the final payment of $190 million, as part of the agreement reached in the middle of last year, under which He had already made another payment of US$226 million in Julyboth on account of the total debt capital of $2.4 billion that the country had to face on July 31, 2021.