Argentine President President Alberto Fernandez's recent European tour gives hope that the country will secure the postponement of its $2.4 billion debt payment to the Paris Club of creditor countries to late June, member of parliament Fernanda Vallejos told Sputnik
BUENOS AIRES (Pakistan Point News / Sputnik - 18th May, 2021) Argentine President President Alberto Fernandez's recent European tour gives hope that the country will secure the postponement of its $2.4 billion debt payment to the Paris Club of creditor countries to late June, member of parliament Fernanda Vallejos told Sputnik.
Last week, 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. According to the president, the country has "the support of the leaders in negotiating the debt" it inherited from the previous government and "the understanding of the IMF in relation to the difficult situation that Argentina is experiencing."
"According to what the president himself said, I positively evaluate his statement saying that he expects a positive response to Argentina's claim regarding the extension of deadlines and the abolition of additional charges for criminal debt, with which [former President Mauricio] Macri and the International Monetary Fund [IMF] have caused enormous damage to Argentina," Vallejos said.
Argentina aspires to postpone the maturities of payments to the Paris Club to avoid possible default in August. It also seeks to renegotiate the $44 billion loan agreement with the IMF that was signed under the Macri government.
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.
"I absolutely agree with the total or partial cancellation proposals, as well as with the suspension of payments, while the pandemic lasts. In fact, I believe that the IMF should have made that decision after the pandemic was declared," Vallejos added.
The topic of debt forgiveness has also reached the US House of Representatives, where Democrats presented a draft resolution requesting the White House to demand the IMF to suspend payments of all debt services, including September and December maturities, until the global crisis caused by COVID-19 ends.
