PARIS (Reuters) – Argentina will be able to avoid a default on debt owed to its Paris Club creditors after recent commitments from Buenos Aires, the group of creditor governments said on Wednesday, confirming a deal with the country.
Argentina said on Tuesday it had reached an understanding with the group for a payment bridge until March 2022 to settle some $2.4 billion that it owes, and it would make a partial payment in the interim period.
The South American country, which is also locked in talks with the International Monetary Fund, will pay some $430 million of the debt before that date, Economy Minister Martin Guzman said.
Confirming the agreement, the Paris Club said in a statement: “Given the commitments made by the authorities regarding the conclusion of an agreement with the IMF as soon as possible and not beyond end March 2022, as well as their commitment to comply with the comparability of treatment, Paris Club would be in a position to avoid declaring a default at end July.”
“Paris Club members also welcome Argentina’s commitment to provide partial payments. They will continue to monitor the situation,” it added.
(Reporting by Leigh Thomas; Editing by Paul Simao)
