The normalization of these payments will allow, among other measures, that companies based in Argentina can request direct loans from their parent companies that are located in one of the 16 countries that make up this organization international.
Above all, this would enable investments in the energy sector, such as dams or for the Néstor Kirchner gas pipeline, as reported.
The agreement with the IMF and its fulfillment is key for the Paris Clubwhich had already given signs last March of cooperation with the country.
Days before the agreement with the Fund was approved, Guzmán and the president of the Paris Club, Emmanuel Moulinhad agreed to a new extension of the understanding reached in June 2021, which granted a term to face a new restructuring, in exchange for partial interest payments, and which postponed the negotiation until the end of June.
This agreement also included financial guarantees from the Paris Club in support of the Extended Facilities program which has a duration of thirty months, allowing Argentina to secure the financial sources identified in the agreement with the IMF.
The financial guarantees granted establish that, during the term of the program, Argentina will make partial payments to Club members in proportion to those made to other bilateral creditors, in accordance with the terms established in the June 2021 understanding.
Argentina’s negotiations with the Paris Club acquire singular importance in the current international context, particularly due to the acceleration of possible foreign direct investments in the energy area, sources close to the negotiations slipped.
The Government had reached an agreement at the end of last month with the Paris Club to defer debt payments until September 30, 2024, while progress is being made on an understanding that includes a new mechanism for repayment of commitments.
Source: Ambito
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