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Paris Club payment resurfaces
La Nacion
August 25, 2010

By Lucas Colonna

Foreign Minister H ctor Timerman yesterday refloated, at a lunch with the ambassadors of the European Union (EU) in Buenos Aires, Argentina's intention to pay off the country's debt in the short term with the Paris Club for almost US$7 billion.

Timerman also committed himself before the diplomats to contribute "creative solutions" for the country to comply with its oft-declared promise to settle its debt with the entity, high-level diplomatic sources who participated in the conclave held at the Belgian embassy told LA NACION.

The official intention has not come together until now as a consequence of the refusal by the Casa Rosada to have the International Monetary Fund (IMF) execute a monitoring of the national accounts, as the rules of the Paris Club establish for paying debts.

"We spoke of the need to increase European investment in the country. And there is when the importance of reaching a deal with the Paris Club was spoken about," said a high level diplomatic source.

"The government has said that it named the representative that was before the IMF as a representative to the Paris Club, and now it's exploring the possibility of reaching a new accord. Timerman said that he wants to initiate a new chapter to explore creative ways to find a solution," the source added.

The foreign minister, according to the sources, added that he plans to give a new push to trade relations with the EU and that, for that, he plans to travel to Brussels in October.

The climate of the meeting was far from the tension that, two months ago, was expressed in the country by European diplomats. At that time, there was a predominant block with heavy concern over the customs obstacles placed in Argentina on food products from the Old Continent.

Yesterday, according to the sources, the issue was raised, but not in a complaining way. Various participants in the conclave said that the episodes were evoked "like a thing of the past." "The situation improved," a diplomat summed up.

The foreign minister was accompanied by the vice minister, Alberto D Alotto; the secretary for international trade and economic relations, Luis Mar a Kreckler, and the national director for international economic negotiations, N stor Stancanelli.

For the EU, ambassadors in attendance were Cristina Funes-Noppen (Belgium), Pal Varga Koritar (Hungary), Rafael Estrella (Spain), G nter Kniess (Germany), Pavel Sipka (Slovakia), Guido Latella (Italy) and Shan Morgan (United Kingdom), among others.

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