Argentina has been granted an unspecified extension to pay its $2 billion Paris Club debt, the Economy Ministry said on Tuesday, as the country seeks to restructure its foreign debt after sealing a recent deal with the International Monetary Fund.
The extension followed Argentina Economy Minister Martin Guzman’s trip to France to discuss the debt, after a payment was postponed in June.
“The country gains time and avoids exposing Argentina to default again,” the ministry said in a statement, noting that it would only have to make “partial payments to the members of the Paris Club in proportion to those it makes to other bilateral creditors.”
Paris Club members include the United States, Germany, Brazil and Japan.
Argentina’s government recently approved a critical debt restructuring deal worth some $45 billion with the IMF. The fund’s board is expected to review the deal on Friday.
IMF Managing Director Kristalina Georgieva tweeted that she and President Alberto Fernandez, who backs the deal, had a “very constructive” phone call on Tuesday.
(Reporting by Carolina Pulice and Nicolas Misculin; Editing by David Alire Garcia, Leslie Adler and Richard Chang)
Financial Post Top Stories
Sign up to receive the daily top stories from the Financial Post, a division of Postmedia Network Inc.
By clicking on the sign up button you consent to receive the above newsletter from Postmedia Network Inc. You may unsubscribe any time by clicking on the unsubscribe link at the bottom of our emails. Postmedia Network Inc. | 365 Bloor Street East, Toronto, Ontario, M4W 3L4 | 416-383-2300