Argentina seeks Paris Club deal
Talks under way about payment arrears; Agreement with holdouts also under consideration
|Amado Boudou wants a solution that meets Argentina’s needs|
The Argentine government is strongly indicating that it wants to reach a deal with the Paris Club of creditor nations on the restructuring of $6.7 billion in payment arrears, prompting Moody’s to suggest that it might eventually upgrade the country’s sovereign rating. However, the Argentine authorities are insisting that in order to reach this accord it should not be necessary for the country to face a review of its finances by the IMF, something that is being pushed for by the Paris Club members. "It’s important to arrive at a solution with the Paris Club, but this solution must be satisfactory for the creditors, be possible to implement, and above all, serve Argentina’s needs," says Amado Boudou, the Argentine economy minister, who recently met Christine Lagarde, the French economy minister, to discuss the subject at the G20 meeting in Pittsburgh.
The Argentine government will not give any official information about its talks with the Paris Club but analysts say that its strategy is to insist on restructuring the debt over a five-year period, rather than paying it all off in one go.