Argentina's Paris Club talks on hold after Guzman resignation - sources

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FILE PHOTO: Argentina's Economy Minister Martin Guzman poses for a picture before an interview with Reuters at the Economy Ministry, in Buenos Aires

By Jorgelina do Rosario

LONDON (Reuters) - Argentina's meeting with the Paris Club group of lenders won't be held on Wednesday as planned in the French capital after former Economy Minister Martin Guzman resigned over the weekend, according to two sources with direct knowledge.

Guzman's successor, Silvina Batakis and her new team at the economy ministry are set to agree on a new meeting date with the group, said one source, who asked not to be named because talks are private. Argentina notified the Paris Club on Monday of the designation of Batakis in her new role.

The economy ministry did not immediately respond to a request for comment.

The decision to postpone the talks was agreed between Guzman and Batakis during a bilateral meeting held on Monday in Buenos Aires, added the second source.

Guzman was set to travel to France this week for formal talks with the group of lenders over restructuring some $2 billion in debt.

Paris Club creditors, which include the governments of the United States, Germany and Italy, said in early June that they expected to reach a deal "in coming weeks", but that accord may now get pushed back as the country faces a fresh political crisis.

There is still no clear timing on future meetings, the sources said, with Batakis not yet having announced her team.

Argentina's government published a new decree last month to pay the debt under the new agreement or at the latest by September 2024 after a previous decree expired in May.

The Paris Club gave Argentina more time last year to pay the money owed, allowing time to negotiate a program with the International Monetary Fund and sparing it from default.

(Reporting by Jorgelina do Rosario in London, additional reporting by Eliana Raszewski; editing by David Evans)