Argentina settles debt

Argentina will pay its entire €4.4bn debt to the Paris Club of lending nations, President Cristina Fernandez said, shoring up sagging investor confidence and opening the door to needed new capital as the country’s economy slows.

The payment, which will tap about a sixth of the country’s €30.7bn in foreign currency reserves, “confirms one more time Argentina’s willingness to meet its international obligations”, Ms Fernandez said.

Argentina defaulted on about €62.6bn in bonds in 2001, the largest default by any nation in history.

Former President Nestor Kirchner restructured most of that debt in 2005 and repaid a €6.2bn loan from the International Monetary Fund in 2006, but left the Paris Club debt outstanding, prompting criticism from international lenders.