Argentina, locked out of overseas markets since its record $95 billion default in 2001, took another step toward a return to selling international bonds by agreeing to repay its debt to the Paris Club.
A final accord on Argentina’s debt with the Paris Club group of creditors could take months to negotiate and wouldn’t place the country’s economic growth and social programs at risk, Economy Minister Axel Kicillof said.
The Paris Club group of creditor nations accepted Argentina’s request to start talks on restructuring about $6.7 billion in debt without the oversight of the International Monetary Fund, President Cristina Fernandez de Kirchner said.
Argentina formally presented an offer to settle about $10 billion it owes to the Paris Club of creditors, 13 years after the country’s record $95 billion debt default, the spokeswoman for the group of creditors said.
Speculation Argentina may win a credit grade increase after reaching a defaulted debt accord with the Paris Club is helping cut borrowing costs by more than 50 percent against similarly rated countries.
Argentine bonds jumped today for the first time this week after the Paris Club of creditor nations invited the South American country to begin formal negotiations in May to settle its outstanding debt.