Argentina begins to pay off debt to Paris Club

Business & Economy July 29, 2014, 10:41

In May, the government agreed on “final settlement” of the domestic debt to the Paris Club that had amassed because of a massive economic crisis in Argentina

BUENOS AIRES, July 29. /ITAR-TASS/. Argentina has made the first payment for $642 million to settle the debt to the Paris Club of public lenders bringing together 19 highly industrialized countries. The debt totals $9.7 billion including interest rate, Argentine Ministry of Economy said.

In May, the government agreed on “final settlement” of the domestic debt to the Paris Club that had amassed because of a massive economic crisis in Argentina aggravated by an economic default in 2001. The agreement envisages gradual debt payment within five years. Buenos Aires plans to make next $500 million payment in May 2015.

The agreement with the Paris Club was reached without the International Monetary Fund IMF mediating role. Argentina has repaid the debt to the London Club of private creditors ahead of time back in January 2006 saving about one billion dollars on interest rate. Argentine authorities have repeatedly criticized “IMF neoliberal recipes” shouldering responsibility on it for heaviest aftermath of the most large-scale socio-economic crisis, which broke out in the country in December 2001.

In 2005 and 2010, Argentina has restructured 93% of state debt totaling $100 billion.

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