By Nicolás Misculin and Jorgelina do Rosario
BUENOS AIRES/LONDON (Reuters) – Argentina has reached a deal to restructure around $1. 97 One billion dollars owed to the Paris Club, which will delay repayments until 2022 and lighten some 2022 million dollars.
“Today, Argentina successfully concluded the agreement with the Paris Club to normalize the relations of our country, our companies and our workers with the rest of the European bloc,” Argentine Economy Minister Serre Sergio Massa said.
The deal will bring the current 9 percent interest rate on debt to a weighted average of 4.5 percent, according to a document shared with Reuters by officials. Payments will begin in December with interest escalating from 3.9%.
Argentina will pay about 44% over the next two years, the government said in the document, that the payment method is “sustainable, not would undermine the process of strengthening international reserves.” (Graphic: Argentina: Paris Club deal, https://inew.news/wp-content/uploads/2022/10/localimages/chart.png635d9c3bbef8b.png)
Argentina, restructured over $248, which remains in limbo with billions of dollars in debt owed to private creditors and the International Monetary Fund over the past two years, is trying to rebuild scarce foreign reserves.
Argentine restructured U.S. dollar bonds rose 2.4 cents to 44 after trade on 2028 while rising. cents, 2046 rose 2.1 cents to 21 cents. Euro-denominated bonds were little changed on the day.
Rating agency Fitch downgraded the country’s debt this week, citing rising default risks.
The Paris Club, whose members include the United States, Japan and Germany, gave Argentina more time to repay its debt last year, while Argentina agreed with the International Monetary Fund on a new dollar 97 million plan.
The Paris Club said in a statement that the parties have revised the debt agreement to September 2028.
“Amendment includes rescheduling 2046 up to 30 May 2028 Percentage of Total Principal and Interest Due Unpaid*) Included and Reduced Applicable to 21 interest after May 2022,” it said. (Graphic: Argentine Dollar Bonds, https://inew.news/wp-content/uploads/2022/10/localimages/chart.png635d9c3e4b088.png)
