The Beeb reports that Argentina agrees to pay Italian holdout creditors
Argentina has agreed for the first time to pay investors who have been holding out for full repayment of bonds which were defaulted on in 2002.If the deal is approved by the Argentine Congress, the 50,000 Italian investors will receive 150% of the face value of the debt of $900m (£625m).
The deal comes as negotiations restart with hedge funds in a US court.
This is big news in many ways, for instance,
- It shows an about-face from the Kirchner era’s policy of stalling in the courts (and a departure from the attitude inspired by Fidel Castro’s call for Latin America to collectively repudiate its foreign debt).
- Macri’s intention of returning Argentina to the international capital markets is solid.
- The timing.
- The payment amount, “The Italians were paid $1.35bn but had been asking for $2.5bn.”
We’ll see how the court proceedings in the U.S. develop.