Paris Club to Spare Argentina From $2.4 Billion Debt Default

The group of rich government creditors known as the Paris Club is willing to delay a $2.4 billion debt payment from Argentina due this month if the nation meets certain conditions, potentially averting a damaging default, Bloomberg News reported. The club will spare Argentina from default if it misses the May 31 payment in the hope that the country can rework a $45 billion credit with the International Monetary Fund, said one of the people, who asked not to be named because the talks are private. An agreement with the IMF may not come until after Argentina’s midterm elections later this year, the person said, declining to specify the conditions that the group is demanding. Argentina’s President Alberto Fernandez extended his European tour to meet IMF Managing Director Kristalina Georgieva in Rome on Friday in a bid to drum up support for a delay and renegotiations with the IMF. Argentina has formally asked the Paris Club for more time to make the payment and is expecting to receive a response by the end of the month. Read more.