Argentina, Paris Club agree on $9.7 billion debt repayment plan after marathon negotiations

Argentina has reached a $9.7 billion deal with the Paris Club to resolve debts unpaid since its economic crisis and default in 2001.

The deal was announced Thursday by Argentina's economy ministry and the group of 19 lending nations, which has lent more than $500 dollars to countries in crisis since the 1950s.

The Paris Club says the five-year payment plan is flexible, sustainable and definitive and should help normalize the country's relationship with the international financial community.

Argentine Economy Minister Axel Kicillof says it reduces interest on the debt from 7 percent to 3 percent, and promises a first payment of $650 million in July. Argentina also promises to pay even more to countries that invest more in the South American nation.