Argentina: Paris Club Debt
Question: What is our reaction to Argentina’s announcement that the settlement of its outstanding debts with the Paris Club will involve a repayment schedule of more than one year and that they will seek a new deal?
Answer: We support efforts by Argentina to normalize relations with the Paris Club and the international financial community. We are pleased to see that Argentina is prepared to address its large and growing arrears to the Paris Club creditors. Contrary to some press reports, the Paris Club and Argentine authorities have not yet discussed or agreed to any specific terms for clearing arrears. There is precedent within the Paris Club for an agreement on normalization of relations without an International Monetary Fund (IMF) program. For a country such as Argentina that can meet its international debt obligations without an IMF program, this would not be unexpected.