The payment deadline to the Paris Club has expired and the country still owes 1,900 million US dollars.

This Thursday will be five years since the signing of the agreement with the Paris Club, for which the state is committed to come back in that term $ 9700 million to a group of creditor countries of Argentina. Despite the date of expiry, the country still owes 1900 million dollars who plans to pay next year.

The agreement with the Paris Club was one of the debt negotiations that failed in 2001 and faced former Economy Minister Axel Kicillof as well as vulture fund American courts. . On May 30, 2014, the payment plan signed by the official, now candidate for governor of Buenos Aires, came into force and the 16 member countries of the club, including the United States, Germany, Spain, Italy and Japan.

The agreement provided for a total payment of US $ 9690 million in an initial period run until this thursday. But it also included a clause by which he gave the state two more years to pay outstanding balances, until May 2021, although with new conditions.

According to estimates of TN.com.ar On the basis of official Treasury data, after five years of the agreement, the State transformed the Paris Club into u8100 million dollars. The unpaid balance, after these calculations, around 1900 million dollars. The account is not linear since on the one hand, since 2014, different interest rates, varying between 3 and 4.5% for the total debt, were in force. But in addition, the payments made annually by the government being denominated in eight different currencies (from the dollar to the Swedish krona), the variation of exchange modifies the precise figures.

Between last Friday and Wednesday, the government asked the Paris club US $ 1900 million, subtracted from the coffers of the Central Bank. The remaining sum, sources from the Ministry of Finance commented on this site, "it is planned to pay next year"The peculiarity of the agreement lies in the fact that all the balances that Argentina maintains with the group of creditor countries after five years will be updated with an interest rate of 9%that's to say double the way he had done it.

Of the nearly $ 2.9 billion committed to pay, just under $ 5 billion was capital and the rest consists of interest and punitive amounts (of punishment) that have been accumulated due to arrears.

The two main creditors within the club are Germany and Japan, the one between the two concentrated more than 55% of the debt. The Netherlands, Italy, Spain and the United States are much further behind, with 6 to 8% of the liabilities.

During the negotiation, Kicillof was criticized by the opposition for having not having made a withdrawal in the total debt contracted with the Club, the Kirchner government having recognized all the capital and interests claimed by the creditors. The minister went on to argue that, traditionally, the Paris Club only gives up part of the liabilities when it negotiates with very poor and indebted countries.

The very birth of the Paris Club in 1956 was linked to the Argentine debt. At that time, all of the country's creditors (which included not only foreign sovereigns, but also state-owned companies or export-loan agencies) needed to create a space for discussion. to reorder compliance by the Argentine government.

In 2001, with the declaration of default, the normal flow of payments was interrupted. Since then, debt with the Paris Club countries has grown by 7.2% annually, according to the Kicillof team at the 2014 negotiations. The same document indicated that these loans were intended to "build power plants. hydro ". Yacyretá and Hidronor, credits contracted by the National Commission for Atomic Energy (CNEA) for the sanitation of the Matanza River, as well as loans contracted by the provinces ".