In the news:
The government and the creditors have a preliminary agreement by which the creditors, led by Paul Singer, would received approximately 75% of the money they are owed, after fifteen years in the courts,
Torino Capital, a New York-based investment bank, said the hedge funds will likely reap between 10 to 15 times what they initially paid for the bonds. That figure, which is based on the assumption that they bought the debt at about 20 cents on the dollar, is in line with other analysts’ estimates. The settlement includes accrued interest and lawyers fees.
A deal also would be a victory for Argentina’s new president, Mauricio Macri, who made settling the dispute among his priorities during the campaign. He wants a deal so Argentina can raise new capital from foreign bond offerings to help stimulate its depressed economy.
. . .
The lengthy battle was possible, because the bonds were sold to investors without collective action clauses, which would have forced minority holders to go along with a settlement if the bulk of the creditors agreed.
President Barack Obama and his family will be in Argentina on the 40th anniversary of the last military coup:
The US delegation could be made up of as many as 1,000 people, including business leaders who are expected to announce investments in the country.
I don’t know about the coup, but the timing coincides with the good news on the defaulted bonds.
I hope they stop by La Ideal
As mentioned last week,
federal appeals court prosecutor Ricardo Sáenz said that “the evidence produced so far” showed that Nisman had been the victim of a homicide.
Merv Benson points out,
It is still not clear whether those responsible for his death were tied to Iran or to the Argentine government which opposed his pursuit of the case. Perhaps now with a new government in place there will be a search for justice.
The common thread on the three stories is that the new administration is giving very positive signs of moving away from the years of pernicious Kirchnerism.