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LatinNews Daily - 31 October 2022

In brief: Argentina reaches agreement with Paris Club

* Argentina’s government led by President Alberto Fernández has reached an agreement to restructure its debt with the Paris Club of creditors over a six-year period. Economy Minister Sergio Massa wrote on Twitter that the new agreement signed with the chair of the Paris Club, Emmanuel Moulin, allows Argentina “to normalise the relations of our country and our companies with the countries of the organisation”. Massa added that the restructuring agreement is “key to improving the level of investment and financing for the development of our industry, boosting trade in the protein and energy sectors and consolidating Argentina as an important ally for the European continent.” The agreement, which replaces an original deal signed in 2014, consists of rescheduling the payment of the US$2bn that Argentina owes the Paris Club to September 2028 and reducing the interest paid on the debt. This follows an agreement made with the Paris Club in May, under which the repayment of debt was deferred until September 2024. According to a document shared with Reuters by officials, the deal will see the current 9% interest rate on the debt cut to a weighted average of 4.5%. Payments will start from December and will be paid in semi-annual installments, with interest gradually stepping up from 3.9%.

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