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The Paris Club and Argentina conclude a debt rescheduling

The Paris Club and Argentina conclude a debt rescheduling

October 28, 2022


The representatives of Paris Club creditors and of the Government of the Argentine Republic met on 27 and 28 October 2022 and amended the Joint Declaration dated 29 May 2014 to clear the remaining debt in arrears due to Paris Club creditors over a six-year period. This follows the financing assurances provided by the Paris Club creditors on 21 March 2022 to support the approval by the International Monetary Fund of an Arrangement under the Extended Fund Facility (EFF) for the Argentine Republic on 25 March 2022 and is consistent with IMF program parameters with respect to long-term debt sustainability.

The scheme offers a framework for a sustainable solution to the question of arrears due by the Argentine Republic to Paris Club creditors, covering a total estimated stock of arrears of USD 1.972 billion, as of end September 2022. The amendment consists of a rescheduling of 100% of the total amounts of principal and interest due and not paid as of 30 May 2022 inclusive and a reduction of the interest applicable after 30 May 2022.

During the meeting, the delegation of the Argentine Republic described the economic and financial challenges faced by its country and demonstrated the strong determination of Argentine authorities to reduce the economic and financial imbalances and to reach the targets of the program supported by an Arrangement with the IMF under the Extended Fund Facility (EFF).

The Government of the Argentine Republic is committed to obtain the provision by its other official bilateral creditors of new disbursements in line with the assumptions of its financial program. The Government of the Argentine Republic will work regularly with the Paris Club on the progress in such front.

Background notes

1. The Paris Club was formed in 1956. It is an informal group of official creditors whose role is to find coordinated and sustainable solutions to the payment difficulties experienced by borrower countries.

2. The members of the Paris Club which participated in the rescheduling were representatives of the Governments of Austria, Belgium, Canada, Denmark, Finland, France, Germany, Israel, Italy, Japan, the Netherlands, Spain, Sweden, Switzerland, the United Kingdom, and the United States of America.

Observers at the meeting were representatives of the Governments of Australia, Brazil, Ireland, Korea, Norway and the Russian Federation, as well as the International Monetary Fund, the World Bank, the European Commission, the Inter-American Development Bank, the Organisation for Economic Cooperation and Development (OECD) and the Secretariat of the UNCTAD.

3. The delegation of the Argentine Republic was headed by Mr. Sergio Massa, Minister of Economy, Mr. Leonardo Madcur, Secretary of State and Chief of Staff, Mr. Marco Lavagna, Secretary of State and in charge of the Secretariat of International Economic and Financial Affairs, and Mr. Nicolas Segal, Undersecretary of External Public Debt Sustainability. The meeting was chaired by Mr. Emmanuel Moulin, Chairman of the Paris Club, Director General of the Treasury at the French Ministry of Economy, Finance and Industrial and Digital Sovereignty.

Technical notes

1. The Argentine Republic’s economic program is supported by an Extended Fund Facility (EFF) approved by the Executive Board of the International Monetary Fund (IMF) on 25 March 2022.

2. The total stock of the Argentine Republic’s debt owed to Paris Club creditors was estimated to be USD 1.972 billion as of 30 September 2022.

3. Repayment, denominated in the original loan currencies, by the Argentine Republic of the corresponding sums are to be made in 13 and successive semi-annual instalments, the first one to be made on December 2022, and the last one to be made on September 2028.

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