Argentina Hopes for Paris Club Debt Extension, Local Media Says | The powerful 790 KFGO
BUENOS AIRES (Reuters) – Argentina’s Peronist government is optimistic about an extension of the $ 2.4 billion repayment to the Paris Club of national lenders, local media said on Sunday ahead of the debt deadline next week.
Argentina’s center-left President Alberto Fernandez has been pushing in recent weeks to postpone the payment, which is technically due on Monday, but has a 60-day grace period before the South American country defaults.
“The national government hopes that the measures taken by President Alberto Fernández a few days ago, before the highest authorities of European countries, will lead to the postponement of the payment,” reported the official Telam news agency.
Argentina, which restructured more than $ 100 billion in private debt last year following its ninth sovereign default, is now stuck in talks with the International Monetary Fund to postpone some $ 45 billion in payments that ‘she can’t honor.
The grain-producing country, once a global power but in recent decades plagued by economic crises, has been in recession with rampant inflation since 2018, despite the IMF granting the country a record loan that year.
The influential newspaper La Nacion said that if there was any frustration with Argentina’s repeated defaults, the Paris Club member countries were likely to give the country a “bridge” period to repay debt, even s ‘there were conditions.
An Argentine government source told Reuters on Sunday that “the dialogue (with the Paris Club) is good” without giving further details.
Argentina’s already hard-hit economy has been rocked by the coronavirus pandemic, with a sharp second wave now crashing into the country, which currently has one of the highest average daily death rates per capita in the world.
(Reporting by Jorge Otaola; Written by Adam Jourdan; Editing by Chizu Nomiyama)