AMENDMENT TO THE JOINT DECLARATION ON ARREARS CLEARANCE WITH THE ARGENTINE REPUBLIC DATED 29 MAY 2014 28 October 2022 |- PREAMBLE 1. The representatives of the Governments of Austria, Belgium, Canada, Denmark, Finland, France, Germany, Israel, Italy, Japan, the Netherlands, Spain, ‘Sweden, Switzerland, the United Kingdom, and the United States of America, hereinafter referred to’as, "Participating Creditor Countries", met in Paris on 27 and 28 October 2022 with representatives of the Government of the Argentine Republic in order to amend the Joint Declaration on arrears clearance with the Argentine Republic dated 29 May 2014. Observers from the Governments of Australia, Brazil, Ireland, Korea, Norway and the Russian Federation, as well as the International Monetary Fund, the World Bank, the European Commission, the Inter-American Development Bank, the Organisation for Economic Cooperation and Development (OECD) and the Secretariat of the United Nations on Trade and Development (UNCTAD) also attended the meeting through videoconference. 2. The delegation of the Government of the Republic of Argentina described the serious economic and financial challenges faced by its country and its strong determination to reduce the economic and financial imbalances and to reach the targets of the programme supported by an Arrangement with the IMF under the Extended Fund Facility (EFF), 3. The representatives of the IMF described the Argentine Republic's economic situation and the major elements of the reform programme adopted by its Government and supported by an Arrangement under the EFF. The 30-month Arrangement, approved on 25 March 2022, involve specific commitments in both the economic and financial fields. 4, The representatives of the Governments of the Participating Creditor Countries noted the commitment of the Government of the Argentine Republic to undertake strong measures of adjustments in the economic and_ financial programme and stressed the importance they attach to the continued and full implementation of the Argentine Republic's IMF-supported programme. 5, Unless otherwise specified in this Amendment, the terms of the Joint Declaration on arrears clearance with the Argentine Republic dated 29 May 2014, hereinafter referred to as “the Joint Declaration’, apply mutatis mutandis, as. applicable. II-RECOMMENDATIONS ON TERMS OF THE REORGANIZATION In view of the serious payment difficulties faced by the Government of the Argentine Republic, the representatives of the Participating Creditor Countries undertake to recommend to their Governments or their appropriate institutions that they provide, through rescheduling or refinancing, debt treatment for the Argentine Republic on the following terms: A. Debts concerned - ew Al PAN nD JM % REIS ee aThe debts to which this reorganization is to apply are the repayments of principal and interest (including compensatory and final interest) due as a result of the consolidation agreements concluded consistent with the Joint Declaration. B. Terms of the treatment 1. The treatment consists of: a) A rescheduling of 100% of the amounts of Principal and Interest (including final interest at a rate of 9%) due and not paid as of 30 May 2022 inclusive; b) A revision of the “Final Interest” applicable. 2. Rescheduling 100% of the amounts of Principal and Interest (including final interest) due and not paid as of 30 May 2022 inclusive on debts referred to in Article Il paragraph A are to be rescheduled or refinanced. Repayment, denominated in the original loan currencies, by the Argentine Republic ofthe corresponding sums are fo be made in 13 and successive semi-annual principal instalments, the first one to be made on 20 December 2022 and the last one to be made on 30 September 2028. - 7.74% on 20 December 2022; - 7.76% on 30 March 2023; - 7.86% on 30 September 2023; - 8.63% on 30 March 2024; - 8.63% on 30 September 2024; = 9.97% on 30 March 2025; - 9.97% on 30 September 2025; - 6.98% on 30 March 2026; - 6.98% on 30 September 2026; = 6.69% on 30 March 2027; - 6.62% on 30 September 2027; - 6.35% on 30 March 2028; - 5.82% on 30 September 2028. 3. Revision of the applicable “Final Interest” The “Final Interest” rate, as described in Article II/B of the Joint Declaration, is fixed at an annual rate of 4.5% starting from 31 May 2022 to 30 September 2022, 3.90% starting from 1 October 2022 to 30 September 2023, 4.5% from 1 October 2023 to 31 March 2027 and 5.2 % from 1 April 2027. “Final interest” at a rate of 4.5% will be capitalized from 31 May 2022 to 30 September 2022" and Fepayment schedule defined above will apply to the stock of debt as of 1 October 202: The “Final Interest’ rates will apply to the calendar of semi-annual principal instalment referred to in paragraph II.B-2. Ill- GENERAL RECOMMENDATIONS 1. The Government of the Argentine Republic undertakes to: For a stock of debt estimated at USD 1,972,614,511 as of end of September 2022 at the date/of \) signature of the Amendment to the Joint Declaration. The precise figures will be reconciled i bilateral agreements. Ob yn (> NK Wa a) ensure the provision by its other official bilateral creditors of new disbursements in line with the assumptions made in the second review of the EFF Arrangement with the IMF approved on 7 October 2022 and b) continue implementing the EFF Arrangement with the IMF approved on 25 March 2022 or any subsequent arrangement approved before 30 September 028. 2. The Government of the Argentine Republic intends to inform the Paris Club every six months on the Progress accomplished in the disbursements made by the other creditors mentioned in Article Ill paragraph 1. Specifically, every six months during the implementation of this Amendment, the Government of the Argentine Republic intends to transmit to the Paris Club Chair a written document taking stock of the new disbursements made by the other creditors mentioned in Article Ill paragraph 1 including - the name of each creditor concerned, and the corresponding amount of debt service paid to each creditor and the amount of new disbursements received; - the description of possible or actual disbursement shortfalls; as compared to the annex consistent with the IMF arrangement; ; the description of backstop mechanisms, including existing swap lines, to cover any shortfall in planned project finance disbursement by the other creditors: - the description of strategies to ensure achieving the originally planned project financing disbursements (described in the annex) by other creditors in the next six months. 3. In the event that. shortfalls in planned project finance disbursements by the other creditors in a given six-month period between 2022 and 2025 are not remedied within the following six months, the Government of the Argentine Republic commits to compensate Paris Club creditors and has the option to within one month: (i) make an anticipated |imited principal payment equal to the unsettled shortfall up to USD 150 million, which will be deducted from the last instalments so as not to alter the agreed schedule under II.B; or (ii) mobilize any possible alternative financing sources from the other creditors, including existing swap lines, to compensate such shortfall. The Government commits to share the relevant additional drawn amounts and terms and conditions of alternative financing sources with the Paris Club in advance of activating them to ensure comparability of treatment. 4. Upon request of a Participating Creditor Country or of the Chair of the Paris Club, each Participating Creditor Country undertakes to make available a copy of its bilateral agreement with the Government of the Argentine Republic whici implements this Amendment to the Secretariat of the Paris Club in order to inform other Participating Creditor Countries. The Government of the Argentine Republic acknowledges this arrangement. 5. Each Participating Creditor Country undertakes to inform the Chair of the Paris Club of the date of the signature of its bilateral agreement and of the amounts of debts involved. The Government of the Argentine Republic acknowledges this arrangement. MN fee fy KM lg 0 Se PAN > JM 6. heeyf M 4 6. The Government of the Republic of Argentina undertakes not to impose any restriction other than those approved in the context of the IMF- ‘supported programme to permit the transfer of foreign exchange due by the private debtors in the Republic of Argentina for servicing their foreign debt owed to or guaranteed by the Participating Creditor Countries or their appropriate institutions and not subject to this consolidation. As regards to servicing external debt obligations not covered by this Amendment, including private sector debts, the Government of the Republic of Argentina undertakes not to impose any restrictions other than those approved in the context of the IMF-supported programme which would prevent debtors in the Republic of Argentina from paying promptly their obligations overdue or falling due. IV- IMPLEMENTATION The detailed arrangements for the rescheduling or refinancing of the debts are to be implemented by bilateral agreements to be concluded by the Government or the appropriate institutions of each Participating Creditor Country with the Government of the Argentine Republic on the basis of the following principles: 1. The Government or the appropriate institutions of each Participating Creditor Country is to either: + refinance the debts by placing new funds at the disposal of the Government of the Argentine Republic according to existing payment schedules during the consolidation period and for the above-mentioned percentages of payment. These funds are to be repaid by the Government of the Argentine Republic according to the terms and conditions set out in Articles Il paragraph B; or - reschedule the corresponding payments. 2. All other matters involving the rescheduling or the refinancing of the debts are to be set forth in the bilateral agreements which the Government of the Argentine Republic and the Governments or the appropriate institutions of the Participating Creditor Countries are to seek to conclude before 30 November 2022. In case a bilateral agreement has not been signed before 30 November 2022, the Government of the Argentine Republic commits to make a payment correspondin to the 20 December 2022 instalment, which wil then be applied consistently wit the terms of this amended Joint Declaration once the corresponding bilateral agreement is signed 3.1f the Government of the Argentine Republic has not complied with its payment obligations under this Amendment; or ~ if the Government of the Argentine Republic does not continue to implement the EFF Arrangement wih the IMF approved on 25 March 2022* or any subsequent arrangement approved before 30 September 2028; or - if the Participating Creditor Countries determine in good faith that the conditions noted in paragraph Ill 3. in this amendment are not met; ? For this purpose, the Government of the Republic of Argentina acknowledges that the IMF is to inform the Chairperson of the Paris Club regarding the status of the Republic of Argentina relations with the IMF co) (= : “| Meg lS ©) oe PhN “am JM in Vn SI5) - then the Participating and Observer Creditor Countries may agree to terminate this Amendment. If the treatment is terminated, the amounts already consolidated will become immediately due. Late interest of 5.2% will be charged on those amounts from the due date up to the effective repayment date and will be immediately payable. 4 The representatives of the Governments of each Participating Creditor Country and of the Government of the Argentine Republic undertake to recommend to their respective Governments or appropriate institutions that they initiate bilateral negotiations at the earliest opportunity and conduct them on the basis of the principles set forth herein. Done in Paris, on 28 October 2022 in two versions, English and French- both texts equally authentic erson The Heads of the Delegation of the Paris Club of the Argentine Republic Emmanuel MOULIN Leonardo MADCUR & \ Marco LAVAGNA Delegation of Austria Ye of Finland Johann KI Outi Ap Delegation of Belgium Delegation of France, Philippe NIZEYIMANA Philippe GUYONNET-DUPERAT ‘ei Delegation of Canada Delegation of Germany lichael SARTY Thomas SCHAEKERMANN Delegation of Denmark Delegation of Israel Niels DALL-HANSEN Dawn BEN ZVI Z . MEE yo \ fl fas yw, we PhN wp JM fm LUDelegation of Italy Delegation of Japan a a Delegation of the Netherlands Delegation of Switzerland Nikki KERSTEN Alexander SIEGENTHALER Mb She Delegation of Spain Delegation of the United Kingdom Alvaro G! IAVARRO Jennifer MARTIN 4 Wi Delegation of Sweden Delegation of the United States Lars OSTLING of America Gregory SCHIFFER lus AS Mibly MER Nk {il le wr PAN Ai Jah bo hoe MIG f gy7 AMENDMENT TO THE JOINT DECLARATION ANNEXE Projected Disbursements from non-Paris Club Creditors in the Second Review of the IMF EFF (7 OCTOBER 2022) (Section Ill. 3) 2022 2023 | 2024 (20250 Disbursement | S1 $2 S1 S2 S1 $2 si |s2 (M USD) 52 388 | 500 | 35 625__[626 | 500 | 500 IMF Indicative Disbursements from non-Paris Club Creditors in the Second Review of the IMF EFF (7 OCTOBER 2022) 2026 2027 [2028] 2029 Disbursement |S1__[S2__|si_[S2__|st_[s2__|Si_[S2 (MUSD) 500 [500 |500 500 | 375 [375 [425 | 425 Me nt wih Ws iN uu JM én ke