The Strategist

Argentina postpones payment of the Paris Club debt

03/23/2022 - 08:24

The Argentine authorities were able to postpone the deadline for $2 billion payment to the Paris Club of creditors, which was expiring at the end of the month, the newspaper La Nacion reported citing sources.

Qu1m via flickr
Qu1m via flickr
A year ago, the parties agreed that until March 31, 2022, Argentina would have to decide whether to restructure the debt.

"The Argentine government was able to extend the $2 billion payment, which expired at the end of the month to the Paris Club, for 2.5 years... even though negotiations on better terms for the debt, whose interest rate is 9%, will continue until the end of June," the media noted.

Earlier, Argentina reached an agreement with the IMF that allows it to postpone debt payments of nearly $45 billion for several years - payments will begin in 2026 and will end in 2034, the country president Alberto Fernandez said earlier.

The Paris Club is an informal intergovernmental organization of developed nations that lend to other nations. At present, the club's main goal is to restructure the foreign debt of developing countries. The Paris Club currently includes 20 states.