Accessibility/Mobile Features
Skip Navigation
Skip to Content
Editorial News
Business
Classified Sites

The Canadian Press - ONLINE EDITION

Argentina, Paris Club agree on $9.7 billion debt repayment plan after marathon negotiations

BUENOS AIRES, Argentina - Argentina and the Paris Club agreed early Thursday on a plan to resolve $9.7 billion in debts that have gone unpaid since the South American nation's devastating economic crisis and default in 2001.

The Paris Club, a group of 19 lending nations that has lent more than $500 billion to countries in crisis since the 1950s, called the five-year payment plan a "sustainable and definitive solution" that should help Argentina normalize its relations with the international financial community.

Argentine Economy Minister Axel Kicillof highlighted that the cash deal requires no oversight from any international agencies that would put conditions on his government's management of Argentina's economy, and reduces interest on the debt from 7 per cent to 3 per cent.

The deal promises a $650 million cash transfer in July 2014 as a first step, and annual payments thereafter that Argentina will have no problem including in its debt calendar, Kiciloff said.

Also, it promises more support for Argentina's economic recovery, because it provides for additional debt payments to Paris Club nations that agree to invest, the ministry said.

The club's brief statement said only that "Paris Club members' export credit agencies that wish to do so will resume their export credit activities."

The Paris Club was formed initially to help Argentina in 1956, and the South American nation has remained indebted to it ever since, renegotiating payment plans in 1962, 1965, 1985, 1987, 1991 and 1992, the ministry noted.

"Finding a solution to this unpaid debt was always an objective of this government," the ministry statement said, celebrating that the deal calls for cash payments rather than new debt. "With the deal reached today, Argentina closes one more chapter in its sad history of overindebtedness that has led it inevitably to default," the ministry statement said.

The club's permanent members are Austria, Australia, Belgium, Canada, Denmark, Finland, France, Germany, Ireland, Italy, Japan, Netherlands, Norway, Russia, Spain, Sweden, Switzerland, the United Kingdom and the United States.

  • Rate this Rate This Star Icon
  • This article has not yet been rated.
  • We want you to tell us what you think of our articles. If the story moves you, compels you to act or tells you something you didn’t know, mark it high. If you thought it was well written, do the same. If it doesn’t meet your standards, mark it accordingly.

    You can also register and/or login to the site and join the conversation by leaving a comment.

    Rate it yourself by rolling over the stars and clicking when you reach your desired rating. We want you to tell us what you think of our articles. If the story moves you, compels you to act or tells you something you didn’t know, mark it high.

Sort by: Newest to Oldest | Oldest to Newest | Most Popular 0 Commentscomment icon

You can comment on most stories on brandonsun.com. You can also agree or disagree with other comments. All you need to do is register and/or login and you can join the conversation and give your feedback.

There are no comments at the moment. Be the first to post a comment below.

Post Your Commentcomment icon

Comment
  • You have characters left

The Brandon Sun does not necessarily endorse any of the views posted. Comments are moderated before publication. By submitting your comment, you agree to our Terms and Conditions. New to commenting? Check out our Frequently Asked Questions.

letters

Make text: Larger | Smaller

Brandon Sun Business Directory
Sudden Surge: Flood of 2014
Opportunity Magazine — The Bakken
Why Not Minot?
Welcome to Winnipeg

Social Media

Canadian Mortgage Rates