Argentina has reached an agreement with the Paris Club group of international creditor governments to repay its overdue debts over a five-year period.
The deal covers Argentine arrears of some $9.7bn (£5.8bn). The government of President Cristina Kirchner said in 2008 that it wanted to pay back the debt inherited from the country's 2001-02 default crisis.
During the last weeks of 2001 the Argentine government defaulted on public debt totalling $132bn. In a statement, the Paris Club said a first instalment of at least $1.15bn was due by May 2015. The next payment will then be due by May 2016.
"Realisation of initial payment under a formal commitment of Argentina to fully clear its arrears is a necessary and important step for the normalisation of financial relationships between Paris Club creditors and Argentina," the Paris Club said.
"During the meeting, the delegation of the Argentine Republic provided a description of the economic and financial situation of its country and presented the measures implemented by the Argentine Government aimed at enhancing inclusive growth and strengthening resilience to external shocks."
The Paris Group also said the agreement allowed for credit agencies to resume doing business with Argentina. Argentina was represented in the negotiations by Finance Minister Axel Kicillof. The Paris Club was formed in 1956.
It is an informal group of creditor governments from major industrialised countries.
Germany is Argentina's biggest Paris Club creditor with about 30% of the debt, followed by Japan with about 25%. Other debt holders include the Netherlands, Spain, Italy. Switzerland and the US.
bbc.com
The deal covers Argentine arrears of some $9.7bn (£5.8bn). The government of President Cristina Kirchner said in 2008 that it wanted to pay back the debt inherited from the country's 2001-02 default crisis.
During the last weeks of 2001 the Argentine government defaulted on public debt totalling $132bn. In a statement, the Paris Club said a first instalment of at least $1.15bn was due by May 2015. The next payment will then be due by May 2016.
"Realisation of initial payment under a formal commitment of Argentina to fully clear its arrears is a necessary and important step for the normalisation of financial relationships between Paris Club creditors and Argentina," the Paris Club said.
"During the meeting, the delegation of the Argentine Republic provided a description of the economic and financial situation of its country and presented the measures implemented by the Argentine Government aimed at enhancing inclusive growth and strengthening resilience to external shocks."
The Paris Group also said the agreement allowed for credit agencies to resume doing business with Argentina. Argentina was represented in the negotiations by Finance Minister Axel Kicillof. The Paris Club was formed in 1956.
It is an informal group of creditor governments from major industrialised countries.
Germany is Argentina's biggest Paris Club creditor with about 30% of the debt, followed by Japan with about 25%. Other debt holders include the Netherlands, Spain, Italy. Switzerland and the US.
bbc.com
No comments:
Post a Comment