Argentina Plans Partial Payment to Paris Club, Averting Default

Argentina will make a partial payment to the group of wealthy government creditors known as the Paris Club of an outstanding debt of $2.4 billion, Bloomberg News reported. The club will spare Argentina from default in the understanding that the country can rework a $45 billion credit with the International Monetary Fund. The South American nation has used a 60-day grace period to try to reach an agreement with the group after failing to make the payment by May 31. Argentina’s global bonds due in 2030 pared an intra-day decline to trade at 37.23 cents on the dollar on the news. President Alberto Fernandez’s administration is seeking to avoid a damaging default so it can refinance this debt after reworking a deal with the IMF, which is already taking longer than initially expected. Germany, Japan, U.K., U.S., Italy, Spain and Canada are among the 16 creditor countries on this deal. Argentina has requested nine credit lines to the Paris Club since 1956. Read more.