The Paris Cluba space for discussion and negotiation between creditors of Western powers and debtor countries, promised to set a limit of “six months” to respond to renegotiation requests from over-indebted nations.
This was stated today by the president of the organization, Emmanuel Moulin, at the inauguration of the tenth Annual Forum of the Paris Club, organized in the French capital.
“The deadlines have been very long. It is true that technical work is needed, but we cannot let countries wait more than two years before getting debt treatment”acknowledged Moulin in statements broadcast by the AFP news agency.
The informal group, created in 1956 in response to the need, at that time, for Argentina to renegotiate its commitments, brings together 22 States, including Germany, France and the United States.
The objective of the Paris Club is to reduce to a maximum of six months the period to respond to renegotiation requests from over-indebted countries.
The Annual Forum of the Paris Club will also address on this occasion the issue of the debt of countries such as Zambia, Ghana and Ethiopia.
Argentina’s debt with the Paris Club
In the case of Argentina, in October of last year, the Minister of Economy, Sergio Massa, together with Moulin announced an agreement to reschedule the country’s debt, which will have a payment term of six years and a reduction in applied interest.
At that time, the technical teams of the Argentine Government and the creditor countries closed an understanding that modified the Joint Declaration of May 29, 2014, signed by Axel Kicillof when he was at the Palace of Finance, which had as its axis the debt that remained in defaulted in 2002.
The understanding made it possible to solve the problem generated by the interruption of payments that occurred in 2019 during the government of Mauricio Macri, due to the failure to comply with the expiration schedule provided for in the previous agreement.
The new agreement is based on the one signed in 2014, but extends the payment in thirteen semi-annual installments, starting in December of last year and ending in September 2028.
On the other hand, the interest rate drops from 9% in the previous agreement to 3.9% for the first three installments of the new agreement, and then it will gradually rise to 4.5%.
Source: Ambito
