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Argentina and the Paris Club reached an agreement

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World
Category:
Economy
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The recognition of the agreed debt is 9,700 billion and that total will be canceled so within 5 years with an initial payment for principal of $ 650 million in July next

Sources involved in the negotiations stated that the consolidated debt amount-Argentina last April 30, amounts to 9,700 million and this will be canceled so full within 5 years with an initial payment for capital of $ 650 million in July.

-The second payment of $ 500 million-will be in May 2015 and the following in May 2016.

The amount agreed for the interest amounts to 3% for capital balances during the first 5 years, while the agreement establishes a minimum payment that will face Argentina. Each year, additional criteria fixed payments if increased investment from member countries of the Club.

The understanding also provides that if during the period of 5 years additional investments are insufficient, Argentina may delay maturity until two years totaling seven years term, with the corresponding increase in financial cost around an additional 1% for the period completely.

Kicillof led the delegation in Argentina, which also took part, Finance Secretary Pablo Lopez; Legal and Administrative Secretary, Federico Thea; the National Director of the National Office of Public Credit, Luis Briones, the Director of Administration of the Public Debt, Claudio Dal Din; the Head of the Debt Restructuring, Hernán Lorenzino and the coordinator of the Unit, Adrián Cosentino.

On the side of the Paris Club negotiation was led by the head of the multilateral forum, the French Ramón Fernández. The meeting began on Wednesday at 10 French time (5 in Argentina) and ended around 6 am (the 1 in Argentina).

The Finance Ministry said that "in this way, Argentina continues regularization path of international liabilities resulting from the default of 2001." The Paris Club brings together 19 countries (Australia, Austria, Belgium, Canada, Denmark, Finland, France, Germany, Israel, Italy, Japan, Netherlands, Norway, Russia, Spain, Switzerland, Sweden, England and the United States) with the that Argentina contracted various debts from 1956 onwards.

There renegotiations in 1962, 1965, 1985, 1987,1989, 1991 and 1992, and in 2001 it fell again in default as a result of the crisis that determined the end of the convertibility system in place since the early 90's in Argentina.

"Finding a solution for the unpaid debt with the Paris Club was always a goal of this Government, which in 2008 decided to pay it off in full in a single payment. Centre decree signed, the decision was frustrated by the outbreak of the global financial crisis and the fall of the house Lehman Brothers. initiative to date was postponed, "recalled the Ministry of Economy through a press release.

traslation: Belén Zapata