Argentina Has 60 Days To Reach Loan Agreement With Paris Club - Government Sources

Argentina has a final 60 days to hold negotiations with the Paris Club of creditor countries on the $2.4 billion debt repayment, after the deadline for repaying the loan expired on Monday, sources from the Argentine government headquarters told Sputnik

BUENOS AIRES (UrduPoint News / Sputnik - 01st June, 2021) Argentina has a final 60 days to hold negotiations with the Paris Club of creditor countries on the $2.4 billion debt repayment, after the deadline for repaying the loan expired on Monday, sources from the Argentine government headquarters told Sputnik.

"It [the country] has actually entered the period of 60 extra days in the framework of negotiations with the Paris Club," the governmental sources said.

Previously, Argentine Minister of Economy Martin Guzman held rounds of dialogues in Europe to postpone repayment of the country's debt. In May, Argentine President Alberto Fernandez visited Portugal, Spain, France, and Italy as part of efforts to secure a loan payment deferment. The Argentine leader called his tour "very productive," noting that his team achieved the goals they had set.

In addition, the Ministry of Economy said that the head of Argentina held a videoconference with German Chancellor, Angela Merkel, on May 26.

In August, the Argentine government managed to restructure its $108 billion debt to private creditors, which led to the reduction of the country's debt by $37.7 billion over the next ten years.

There have lately been growing calls in Argentina for a debt write-off as well as the suspension of payments during the COVID-19 pandemic, which has deepened crises in many countries.

The Paris Club, founded in 1956, integrates such states as Germany, the United Kingdom, France, Spain, Sweden, Switzerland, Italy, Denmark, Finland, among other European countries, as well as the United States, Canada, Russia, Australia, Israel, Brazil, Japan, the Republic of Korea.