Argentina’s Paris Club Offer
James M. Roberts /
The announcement last week by President Cristina Fernández de Kirchner’s government that Argentina intends to repay nearly $9 billion in official sovereign debt—a higher figure than it had said previously that it owed—to other member nations in the Paris Club could be seen as a step forward.
But apparently it was not enough evidence of progress to convince the Obama Administration that Argentina is sincere about living up to its obligations as a member of the G-20. Kirchner was reportedly miffed when President Obama announced during his State of the Union speech that his upcoming visit to Latin America would not include a stop in Argentina.
Perhaps the Kirchner government should reflect a bit more on the signals its policies are sending to the rest of the world. Although her government has recently discussed a deal with official Paris Club creditors, Argentina still has $16 billion in arrears to numerous private creditors in the U.S. and Europe. And it’s important to note that the U.S. government’s stake in the Paris Club negotiation is a mere fraction—$360 million—of the proposed $9 billion settlement. Argentina owes most of that money to other foreign governments. (more…)