The commitment is with international creditors of the Paris Club; Economy minister launched new credit program
The Minister of Economy of Argentina, Sergio Massa, said this Friday (28.Oct.2022) that he closed an agreement for the payment of the country’s debts with the Paris Club, group of international creditors. Financial outstanding amounts total US$ 2 billion.
The government will have to pay an interest rate of 3.9% per year to the international institution and pay off the debt in 6 years – until 2028. The Paris Club is an informal group of official creditors with the objective of helping countries that are experiencing difficulties.
In return, the entity requests reforms to stabilize and restore the macroeconomic and financial balance of the nation that is negotiating. United States, Japan and Germany then among the members.
The agreement with the Paris Club also seeks to unlock international funding for the country. In March of this year, Argentina closed a US$ 44 billion agreement with the IMF (International Monetary Fund) to refinance a loan.
The commitment to the IMF is for Argentina to return to the global debt securities markets in 2025.
CREDIT FOR ECONOMY
Sergio Massa announced that the measure will make it possible to unify all credit programs in the country into a single one: CreAr (Crédito Argentino). “It will unify all credit promotion policies for the productive sectors”declared the minister.
Massa’s objective is to restore the relationship between Argentina’s companies and workers with European countries. CreAr’s investment will total US$ 3.20 billion (or 500 billion Argentine pesos) and aim at the development and growth of the economy, especially small and medium-sized companies.
“We are one of the countries that guarantee global food security, we are one of the first countries that had to tolerate the impact of the global war on its economy. And we are one of the countries that guarantee energy security and we have to affirm all this when we look at our development model”declared, according to the newspaper Clarin.
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