July 25, 2014
Kicillof outlines Argentine debt offer to Paris Club
An Argentine delegation has outlined its conditions for repaying debt to the Paris Club, a senior official at the group of creditor nations said, as Buenos Aires seeks to revive long-stalled talks.
Argentina is eager to renegotiate the terms of some $9.5 billion of debt it still owes to the group after it stopped servicing as part of its massive default in 2002.
Paris Club members Germany and Japan between them hold about 60 percent of the outstanding amount.
Economy Minister Axel Kicillof sketched terms for a formal repayment offer in talks in Paris with Club President Ramon Fernandez, its secretary general Clotilde L'Angevin said.
"It's not yet a formal proposal, it's main principles that could serve as a basis of a proposal," she told Reuters, adding that the Club's members would discuss the exchange at a regular monthly meeting on Wednesday.
"It's not yet a formal negotiation process, the discussion between Argentina and the Paris Club are part of an ongoing process," she said.
With Buenos Aires signalling it wants to settle disputes with its creditors, Paris Club members have been eager to get a concrete proposal for the debt to be repaid over a period of time to be determined in negotiations.
The Paris Club wants to be reimbursed in full in order to avoid creating a precedent for other countries that owe its members money.
Argentina wants a breakthrough deal with the group of sovereign creditors because it needs to open up new sources of international funding after being shut out of capital markets for more than a decade since its default.
Argentina's Paris Club debt is one of the last remnants of a 2001-02 economic crisis, which culminated in a roughly $100 billion sovereign debt default.
However, Argentina's dealings with the informal group of mostly western nations date back to the Paris Club's origins in 1956, when the country agreed to meet its public creditors in the Paris capital.