Argentina agreed with the Paris Club to repay debt for US$ 2,000 million

Argentina agreed with the Paris Club to repay the debt for almost US$ 2,400 millionwith a reduction in fines and penalties, which leaves a commitment of US$ 1,972 million.

With the agreement, the rate of 9% that Axel Kicillof signed in 2014 is lowered, which will now have an improvement with a step-up scheme, with a rate of 3.9% for the first three quarterly installments and that rises gradually. The weighted average rate will be 4.5% in a context of rising international financing costs, which the government considers “a good interest rate.”

“The negotiation that we carried out prioritized the sustainable payment profile,” details a statement from the Ministry of Economy.

In Paris, those who closed the discussion for Argentina were Marco Lavagna as advisor for international economic affairs and Leonardo Madcur, chief of staff of the Ministry.

The average semi-annual installment of the agreement reaches US$ 170 million and the economic team sought to fit the most demanding months with those that had less pressure on the debt maturity profile. In the next two years, Argentina will return 40% of the capital owed, while, in the terms of 2014, 58% of the capital had been negotiated in that same period.

In the quarter with the highest load, Argentina will have to face payments of US$ 390 million. Payments begin this semester and extend until the second semester of 2028. The most demanding maturities will be in 2025.

Source: The Chronicler-RIPE

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