Economy

Argentina's decision to pay off its debt to the Paris Club of western creditors "will do nothing to improve Argentina's access to international financial markets or ease the government's forced reliance on Venezuela for financing," according to British newspaper Financial Times (FT).

In a report drafted in Buenos Aires, headlined "Argentina in debt repayment U-turn," the FT reports that Argentinean President Cristina Fernández de Kirchner signed a decree instructing the Economy minister to use freely available central bank reserves to pay off the USD 6.7 billion debt. EFE reported.

The newspaper said that "Argentina sent alarm bells ringing with investors last month when it unexpectedly sold a costly bond to Venezuela." "The 15 percent interest rate was considered excessive" and made Argentina look "desperate."