With this scenario, the technical team will travel to Paris this Wednesday, where they will hold working meetings with Club representatives starting on Thursday 27. The renegotiation covers some $2 billion remaining of the debt but also the interest accumulated so far in 2022.
“The agreement is almost closed. There are very good prospects”, affirmed Massa weeks ago before a group of journalists. That happened in the framework of the meetings that the economic team had in Washington during the International Monetary Fund and World Bank conferences, where the minister took the opportunity to advance on the issue.
As explained in the Government, the restructuring of the debt with the Paris Club is part of the roadmap drawn up to give signs of economic stability. Along these lines, the efforts to order what they classified as a fiscal “overflow”, the growth path of the Central Bank’s reserves and the rescheduling of maturities carried out by the Ministry of Finance stand out.
According to official sources confirmed to Ámbito, one of the central objectives will be to reduce the interest rate that currently amounts to 9% per year and that it is due to a penalty for the delay incurred by the government of Mauricio Macri at the end of his term. It will also seek to extend the maturity schedule to alleviate the financial outlook for the coming years. More than half of the Argentine debt with this consortium is concentrated in two countries: Germany (37%) and Japan (22%). This is followed by the Netherlands (close to 8%), Spain (6.68%), Italy (6.29%) and the United States (6.28%).
The debt with the Paris Club is the last stop in a broader restructuring that included the new agreement with private creditors and the Extended Facilities agreement signed earlier this year with the International Monetary Fund.
Source: Ambito
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