UPDATE - Argentina Reaches Understanding With Paris Club, Will Avoid Default On Debts - Minister

BUENOS AIRES (Pakistan Point News / Sputnik - 23rd June, 2021) Argentina has reached an understanding with the Paris Club, which will allow the country to avoid defaulting on debts to the organization, Economy Minister Martin Guzman told reporters.

"We have reached an understanding with the Paris Club that will allow us not to face a default on July 31 this year," Guzman said.

The sides agreed that Argentina will have a deadline until March 31, 2022 to resolve the issue of restructuring.

"Within eight months, instead of paying about $2.4 billion, under the plan, [the country] will have to pay about $430 million. This means financial relief for Argentina by $2 billion between today and March 31," the minister said.

Under the agreement with the Paris Club, Argentina is also set to reach an understanding with the International Monetary Fund (IMF) to refinance debts of over $40 billion that date back to 2018. Throughout last year, the IMF sent several delegations to the country. Following the visit in November, the organization began shaping the support package for Argentina in consultations with local authorities.

The South American nation, which already suffered a major default in 2001, was rocked by a Currency crisis and economic depression over the recent years. With the situation deteriorating after the outbreak of the coronavirus pandemic, the country laid out a proposal to restructure its debt in April 2020.