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Argentina moves closer to repaying debt to Germany, Netherlands

Staff writer |
Argentina's government has approved templates for bilateral debt-refinancing contracts it plans to sign with Paris Club members Germany and the Netherlands.

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The model agreements were published in the Official Gazette via presidential decree.

Last May, Argentina's government signed a landmark agreement with the 19-nation Paris Club of creditor nations governing the repayment of $9.7 billion in debt dating back to a massive 2001 sovereign default.

In the case of Germany, the overdue debt amounts to 2.53 billion euros ($3 billion) and $19.9 million, as well as a further 71 million euros in arrears with the German government-owned KfW development bank.

The amount of arrears with the Netherlands totals 398 million euros and $222 million.

Once the contracts have been signed, Argentina will pay 35 percent of the debts before the end of May and later pay back the remainder in four tranches through 2019.

Argentina defaulted on roughly $100 billion in debt in December 2001 – at the time the largest sovereign default in world history – amid a financial meltdown and economic depression.

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