“Many of the companies that are here were denied access to credit in Europe and to trade with companies from the European bloc because we had been locked in negotiations with the Paris Club,” the minister stressed.
A technical team from the Ministry of Economy finished negotiating in France with the Paris Club, official sources indicated. It is expected that in November Massa trip to the same city to seal the renegotiation of more than US$2 billion remaining in debt and accumulated interest so far in 2022.
The person in charge of relations with the organizations, Marco Lavagna, and the head of Advisors, Leonardo Madcur, headed the economic and legal negotiations, traveled to Paris.
In October, Massa made great strides in Washington in the negotiations with the Paris Club, during a meeting he held with its secretary general, Emmanuel Moulin, and the parties’ teams.
And I was planning to schedule a trip to France for this week. However, it was decided that the negotiation technicians travel, and it is expected that Massa will sign the agreement at some point in November, due to scheduling issues, the same sources indicated.
Argentina was seeking to renegotiate a debt refinancing of more than US$2,000 million based on an extension of the repayment terms, a reduction in the interest rate, which is currently 9% per year, and the incorporation into said agreement of the US$ 430 million already paid in two installments in February 2022 and July 2021.
The 9% interest rate is due to a penalty for the delay incurred by the government of Mauricio Macri at the end of his term, and which could be lowered by the time the agreement is sealed in October.
The approval of the second review of the current program with the IMF, which was formally finalized on October 7, was key to advancing the negotiations, since for the Paris Club it is a base condition (unwritten), to evaluate the performance and policies for the refinancing of Argentina’s debt with said multilateral organization, the sources confirmed.
IN DEVELOPMENT…
Source: Ambito
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