Argentina, Spain Sign Debt Agreement

Argentina and Spain have signed an agreement setting out the repayment of Argentina’s $982.5 million debt to Spain. The Latin American nation will repay the debt, on which it defaulted six years ago, by 2012, with the outstanding balance adjusting at a rate of 140bp over Libor. The debt forms part of the $6.5 billion still outstanding to the Paris Club group of lenders. The announcement of the agreement, which was first signaled last year, was made Wednesday.