The World Bank today said it was halting consideration of new loans to Argentina after receiving only partial payment of money due.
The World Bank confirmed in a statement it had received a partial payment of $79.2 million on a scheduled payment of $805 million that had been due on October 15th.
"The World Bank welcomes statements by government officials that Argentina remains committed to rectifying the situation as soon as possible. In the meantime, however, the bank's policies regarding late payments will apply," the statement said.
Under the policies, no new loans can be considered when a country is 30 days late on payments. Argentina also cannot be considered for a cut in interest payments on existing loans falling due in the next six months.
In another 30 days, payments from existing World Bank loans to Argentina also would be frozen.
"Full payment by Argentina of amounts overdue by 30 days would result in the immediate lifting of the restriction against consideration of new loans," the Bank said.
AFP