Arab Today, arab today argentina vulture funds end 15year debt battle
Last Updated : GMT 22:34:21
Arab Today, arab today
Arab Today, arab today

With its main holdout creditors

Argentina, 'vulture' funds end 15-year debt battle

Arab Today, arab today

Arab Today, arab today Argentina, 'vulture' funds end 15-year debt battle

Daniel Pollack, court-appointed mediator presiding over the settlement negotiations
New York - Arab Today

Argentina's new market-friendly government has struck a $4.65-billion tentative deal with its main holdout creditors, ending a bitter 15-year battle and opening the door for the South American country to escape financial pariah status.

Court-appointed mediator Daniel Pollack said in New York on Monday that the agreement in principle would see Buenos Aires "settle all claims" with the payment to NML Capital, Aurelius Capital Management and two other hedge fund creditors holding long-defaulted bonds.

Pollack told journalists that the funds must be handed over in cash, in "green US dollars," by April 14, or the whole deal is "terminated."

Later Monday, Argentine Finance Minister Alfonso Prat-Gay said Buenos Aires would pay 75 percent of the bonds' value, or a total of about $6.5 billion.

The deal made good on a promise by President Mauricio Macri, who took office in December, to reverse his predecessor Cristina Kirchner's refusal to bargain with hedge funds she saw as out to cripple the debt-ridden country.

The International Monetary Fund is "very encouraged" by the agreement, a spokesperson said, calling it an "important step towards allowing Argentina to return to financial markets and restore its financial position."

A US Treasury Department statement hailed the deal as a "positive development for the entire global financial system."
"We look forward to full implementation of the agreement, which should help Argentina return to the international capital markets and promote strong and sustainable growth," it added.

The announcement came on the eve of a court hearing Tuesday in New York where an injunction effectively blocking Argentina's access to new loans while the dispute lingered is expected to be lifted -- another step in the financial rehabilitation of Latin America's third biggest economy.

"It gives me greatest pleasure to announce that the 15-year pitched battle between the Republic of Argentina and (NML owner) Elliott Management, led by Paul E. Singer, is now well on its way to being resolved," Pollack said in a statement, calling Macri's turnaround "heroic."

A spokesman for Elliott, who led the creditors, confirmed, saying: "We are pleased to have reached an agreement with Argentina."

The conflict dates back to 2001, when Argentina defaulted on nearly $100 billion in debt. Nearly all the country's creditors eventually accepted to write off 70 percent of their bonds in a restructuring that was meant to allow the country to get back on its feet.

But seven percent of the creditors refused. Elliott, head of a New York hedge fund which bought up debt after the default, sued together with Aurelius for full payment on the face value of the bonds.
- End of default nightmare -

The breakthrough could lead to Argentina regaining its financial footing, both with a reopening of access to international creditors and attracting foreign investors.

"I think that we need call an end to the default with these steps, which are part of the plan for normalization," said Nicolas Dujovne, who heads an economics consultancy in Buenos Aires.

"That's necessary so that the Argentine economy can return to functioning well."

Some questions remain, however.

On the broadest level, the case has raised concerns that creditors in future defaults might be encouraged to take similarly uncompromising positions, undermining the ability to rescue financially stressed governments.
And for Argentina, repaying the hedge funds means taking a sizable chunk out of its foreign reserves.

The government -- struggling to escape the stigma of a "Caa1" deep junk credit rating from Moody's -- says it plans to issue new debt to clear out the old debt.

That would become feasible provided the New York federal court lifts its 2012 injunction which was slapped on Argentina in response to the refusal to deal with the creditors.

And Pollack said the creditors had agreed in the new deal not to interfere with Argentina's bid to raise capital.

"It is hoped by the parties that all necessary steps can be taken in a period of six weeks," he said.

Finally, the fate of the deal could rest on Argentine domestic politics.

Macri, who has sought to draw a distinct line under the policies of his leftist predecessor, still needs to get approval from the opposition-dominated Congress. Juan Pablo Ronderos, from the Abeceb.com economics consultancy, said he expected Macri to get enough votes.

Pollack lauded Macri for resolving what once seemed an intractable impasse.

"Immediately upon his election in November, (he) set about to change the negative course that the Republic had steered in this litigation," Pollack said.

He also praised Singer -- a billionaire who has built a fortune by buying up defaulted and deeply discounted sovereign debt and suing the issuers -- for his personal involvement in the final talks, calling him "a tough but fair negotiator."

"No party to a settlement gets everything it seeks," Pollack said.

"A settlement is, by definition, a compromise and, fortunately, both sides to this epic dispute finally saw the need to compromise, and have done so."
Source: AFP

arabstoday
arabstoday

Name *

E-mail *

Comment Title*

Comment *

: Characters Left

Mandatory *

Terms of use

Publishing Terms: Not to offend the author, or to persons or sanctities or attacking religions or divine self. And stay away from sectarian and racial incitement and insults.

I agree with the Terms of Use

Security Code*

Arab Today, arab today argentina vulture funds end 15year debt battle Arab Today, arab today argentina vulture funds end 15year debt battle

 



Name *

E-mail *

Comment Title*

Comment *

: Characters Left

Mandatory *

Terms of use

Publishing Terms: Not to offend the author, or to persons or sanctities or attacking religions or divine self. And stay away from sectarian and racial incitement and insults.

I agree with the Terms of Use

Security Code*

Arab Today, arab today argentina vulture funds end 15year debt battle Arab Today, arab today argentina vulture funds end 15year debt battle

 



Arab Today, arab today
Arab Today, arab today Youssra depended on colored foam

GMT 16:53 2017 Tuesday ,05 September

Youssra depended on colored foam
Arab Today, arab today EasyJet, Lufthansa among seven to bid

GMT 06:49 2017 Tuesday ,17 October

EasyJet, Lufthansa among seven to bid
Arab Today, arab today Etiquette expert underlines importance of gifts

GMT 17:52 2017 Sunday ,03 September

Etiquette expert underlines importance of gifts
Arab Today, arab today Fighters celebrate Raqa victory

GMT 06:07 2017 Wednesday ,18 October

Fighters celebrate Raqa victory
Arab Today, arab today Hiring not part of Alibaba pledge

GMT 11:26 2017 Wednesday ,18 October

Hiring not part of Alibaba pledge
Arab Today, arab today
Arab Today, arab today
Arab Today, arab today Sidem reveals plan to improve education

GMT 15:52 2017 Friday ,06 October

Sidem reveals plan to improve education
Arab Today, arab today British actress becomes fifth woman

GMT 18:15 2017 Monday ,16 October

British actress becomes fifth woman
Arab Today, arab today Climate-disrupting volcanoes helped topple

GMT 16:00 2017 Wednesday ,18 October

Climate-disrupting volcanoes helped topple
Arab Today, arab today The history of solar eclipses

GMT 05:16 2017 Sunday ,20 August

The history of solar eclipses
Arab Today, arab today Mercedes says recalls 400,000 UK cars

GMT 06:56 2017 Tuesday ,17 October

Mercedes says recalls 400,000 UK cars
Arab Today, arab today Britain's Vauxhall to cut 400 jobs

GMT 10:53 2017 Sunday ,15 October

Britain's Vauxhall to cut 400 jobs
Arab Today, arab today Dalal Abdel Aziz happy for “Seventh Neighbor”

GMT 09:31 2017 Monday ,16 October

Dalal Abdel Aziz happy for “Seventh Neighbor”
Arab Today, arab today Three killed, 360,000 without power

GMT 05:11 2017 Tuesday ,17 October

Three killed, 360,000 without power

GMT 12:33 2017 Friday ,13 October

Anoshka happy for reactions to her talk show

GMT 10:37 2017 Thursday ,12 October

Cara Delevingne accuses Weinstein

GMT 16:53 2017 Saturday ,02 September

Mai importance of gifts during Eid Al-Adha

GMT 18:49 2017 Monday ,16 October

India to close colonial-era military farms

GMT 10:46 2017 Saturday ,05 August

Nanis reveals simple ideas for home renovation

GMT 23:42 2017 Monday ,16 October

Better Marriages Make

GMT 07:02 2017 Sunday ,15 October

German minister sparks uproar

GMT 17:12 2017 Monday ,07 August

Al-Shawaifi reveals secrets of total solar eclipse

GMT 03:59 2017 Sunday ,15 October

US mobile carriers Sprint, T-Mobile to merge

GMT 11:37 2017 Saturday ,12 August

Fashion designer reveals her new collection
Arab Today, arab today
Arab Today, arab today
 
 Arab Today Facebook,arab today facebook  Arab Today Twitter,arab today twitter Arab Today Rss,arab today rss  Arab Today Youtube,arab today youtube  Arab Today Youtube,arab today youtube
arabstoday arabstoday arabstoday arabstoday
arabstoday arabstoday arabstoday
arabstoday
بناية النخيل - رأس النبع _ خلف السفارة الفرنسية _بيروت - لبنان
arabstoday, Arabstoday, Arabstoday