July 22, 2014
'The agreement was made without IMF's involvement'
Cabinet Chief Jorge Capitanich pointed out that the agreement reached with Paris Club yesterday was made without any active involvement from the International Monetary Fund (IMF). He stressed that this is the first time that the Fund “was not part of the conditionalities in the negotiation process” and said it will not monitor the agreement’s compliance either.
“The agreement reached yesterday by our official negotiator, Economy Minister Axel Kicillof, has allowed to consolidate debt at 9,700 millon dollars over five years at a 3 per cent interest rate,” the Cabinet Chief explained. “The deadline can be extended up to 7 years,” he added.
The Kirchnerite official specified that an initial payment of 650 million dollars is scheduled for July and a 500 million dollars installment is to be made in May 2015.
“We have been able to garantee the payment of debt service obligations and debt interests on the basis of a growth strategy and within our sovereign authority in order not to go back to orthodox policies that lead to default and non-compliance,” Capitanich said.
He announced that at his return from Paris tomorrow, Economy Minister Kicillof will release an official statement with more details about the agreement and that he will also brief the Congress.
Capitanich also blasted opposition lawmakers: “They make the problems, we solve them and then they criticize,” he said, referring to the origins of the debt with Paris Club creditors, in the 80s.
Asked about the government's stance regarding the Vulture Funds dispute in US Supreme Court, Capitanich reiterated that they represent a small 1% of Argentina’s creditors and described them as “scavengers who feed on the countries’ wealth”.
“The world needs to isolate these sectors that aim to bore through the credibility of the voluntary debt restructuring system,” he added.