2023-10-03 19:13:16
This Monday, the Argentine Government canceled due dates with international organizations due to US$ 228 millionamong which is a disbursement to the Paris Club for US$ 190 million. The payment occurred as part of the debt refinancing agreement that Argentina maintains with that entity for a total of US$2.4 billion.
Likewise, payments were made to International Bank for Reconstruction and Development (BIF), the Andean Development Confederation (CAF) and the Inter-American Development Bank (IDB).
These payments had a full impact on the reserves of the Central Bank (BCRA), which fell since US$26,920 million to US$26,635 million from Friday to Monday. Data from the monetary authority show that the level of gross reserves was reduced by 285 million dollars.
What is the payment agreement between Argentina and the Paris Club like?
In October last year, the Ministry of Economy signed an agreement with the Paris Club that provides for two semiannual payments of capital and interest until 2028.
The agreement also explains that 40% of the outstanding balance will be paid throughout 2024. As had been estimated in the Economy, the annual payments will range between USD 240 and 390 million per year and were estimated to fall at times when the debt calendar should be most relieved.
Starting next year and also during 2025, the four most onerous payments to that group of countries will take place. The weighted interest rate is 4.5% per year. Initially, the interest is 3.9% and will increase gradually. Starting this month it will climb to 4.5% and will increase once more to 5.2% percent in April 2027.
Massa postponed payments to the IMF
The financial dollars and the possibility of maintaining them during the weeks before the elections will be one of the elements that Massa will follow with greater attention, but also the reserves front.
Throughout October, the Executive Branch faced three instances of payment to the organization and decided to unify all payments towards the last day of the month, as it had done in June and July, while still renegotiating the agreement with the technical staff. The original schedule stipulated a first payment on October 6 for US$1,280 million, another on October 12 for US$640 million and a third for US$673 million, on the last day of October. Now will pay the USD 2.6 billion, all together, on the last day of October, eight days following the elections.
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