Arab Today, arab today us hedge fund seeks arbitration
Last Updated : GMT 11:16:14
Arab Today, arab today
Arab Today, arab today

Over defaulted Peru bonds

US hedge fund seeks arbitration

Arab Today, arab today

Arab Today, arab today US hedge fund seeks arbitration

President of Peru, Ollanta Humala
Washington - Arab Today

A US hedge fund took legal action Thursday to force the government of Peru to pay off $1.6 billion worth of defaulted bonds issued by the country's former military regime.

In a case echoing Argentina's battle with US hedge funds over its defaulted bonds, Connecticut-based Gramercy Funds Management said the government had refused to negotiate with it over the debt it bought at a steep discount 10 years ago, hoping to win full repayment.

Gramercy said Lima had "selectively" defaulted on the local-currency "land bonds" started in 1969 and continued in the 1970s to compensate owners of expropriated land, while it makes payments on other debt.

It said that the government of President Ollanta Humala had interfered with Peruvian court decisions that supported repayment of the bonds revalued to account for years of hyper-inflation.

Gramercy also claims the support of Peruvian holders of the defaulted bonds also demanding payment on a court-designed scale accounting for inflation.

Gramercy issued a notice of arbitration with a claim for the full value of the bonds, adjusted for inflation, under rules of the UN Trade Commission on International Trade Law and the US-Peru bilateral trade agreement.

"Peru's stonewalling and steadfast refusal to have any substantive discussions has left Gramercy no choice but to commence and vigorously pursue this arbitration and enforce its rights," said Gramercy chief investment officer Robert Koenigsberger in a statement.

Gramercy, a specialist in investing in emerging-market assets, is seeking arbitration in New York. 

But last October, when Gramercy first said it might seek arbitration, Peruvian Finance Minister Alonso Segura said his country would oppose any legal action outside its territory.

The move comes at the end of Humala's tenure as president. Peruvians go to the polls this Sunday in the second round of the presidential election.

On Thursday, Peru's Finance Ministry said in a statement that Gramercy's move is "the latest attempt to discredit Peru after similar attempts in the past."

It said the issue is proceeding through Peru's courts and the latest action "seems to be designed only to call attention to Gramercy's own interests at the current time."

"Our country will firmly defend its position against Gramercy's claims under the law," it added.

The case comes just months after Argentina gave up a 15-year fight in New York courts against hedge funds which had scooped up its defaulted dollar-denominated debt at huge discounts to face value.

Even though Argentina had reached a restructuring deal in which nearly all of its creditors agreed to write off much of the debt, the hedge funds, which Buenos Aires labeled "vultures," sued for full repayment and won.

The Argentina case raised questions about the ability of such bond investors to undermine international efforts to help financially weak governments restructure their debts.

Source: AFP

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 us hedge fund seeks arbitration Arab Today, arab today us hedge fund seeks arbitration

 



Arab Today, arab today
Arab Today, arab today Fadi Kataya explains secrets of  Nancy Ajram's newlook
Arab Today, arab today Messi visit will contribute in tourism

GMT 14:04 2017 Friday ,24 February

Messi visit will contribute in tourism
Arab Today, arab today Expresses Algerian history by woody figures

GMT 13:26 2017 Friday ,24 February

Expresses Algerian history by woody figures
Arab Today, arab today Iran complying with nuclear deal

GMT 07:14 2017 Saturday ,25 February

Iran complying with nuclear deal
Arab Today, arab today Zainab al-Maliki reveals herTV presenter models

GMT 18:12 2017 Friday ,24 February

Zainab al-Maliki reveals herTV presenter models

GMT 18:15 2017 Sunday ,19 February

Official accuses militias of challenging companies

GMT 06:51 2017 Saturday ,18 February

Blames government for economic crisis

GMT 06:35 2017 Saturday ,18 February

MP calls for re-operating closed companies

GMT 13:35 2017 Friday ,17 February

Confirms Britain is biggest investor in Egypt

GMT 15:55 2017 Thursday ,16 February

Egyptian foods completely unobserved nor healthy

GMT 11:18 2017 Wednesday ,15 February

Reveals plan to get out of financial crisis

GMT 12:33 2017 Tuesday ,14 February

Yemeni accuses militias of challenging oil
View News in Arabic - Business: أخبار الاقتصاد
Arab Today, arab today
Arab Today, arab today
Arab Today, arab today Reading therapy relieves mental disorders

GMT 15:39 2017 Friday ,24 February

Reading therapy relieves mental disorders
Arab Today, arab today UK appoints 1st Scotland Yard chief in 188 years

GMT 05:14 2017 Thursday ,23 February

UK appoints 1st Scotland Yard chief in 188 years
Arab Today, arab today Ex-yoga missionary unleashes rage

GMT 12:16 2017 Thursday ,23 February

Ex-yoga missionary unleashes rage
Arab Today, arab today Pluto's unruly moons

GMT 06:31 2015 Thursday ,04 June

Pluto's unruly moons
Arab Today, arab today 'Constructive' Vauxhall talk with union

GMT 08:54 2017 Saturday ,25 February

'Constructive' Vauxhall talk with union
Arab Today, arab today Tesla back into red but revenue grows

GMT 07:27 2017 Thursday ,23 February

Tesla back into red but revenue grows
Arab Today, arab today Actress Lobna Abdel Aziz proud of her career

GMT 06:08 2017 Thursday ,23 February

Actress Lobna Abdel Aziz proud of her career
Arab Today, arab today Milan laughs while Rome cries

GMT 10:28 2017 Wednesday ,22 February

Milan laughs while Rome cries

GMT 07:36 2017 Wednesday ,22 February

Wafaa Amer is happy for Sherihan’s return

GMT 12:35 2017 Tuesday ,21 February

63-Year-Old Woman Delivers Baby

GMT 22:42 2017 Thursday ,23 February

Nasima Gamei revives heritage in jewelries

GMT 15:53 2017 Tuesday ,21 February

Small ponds have outsized impact

GMT 20:33 2017 Friday ,17 February

To release new antiques collection

GMT 10:20 2017 Thursday ,23 February

Brazil's top diplomat resigns

GMT 09:59 2017 Monday ,20 February

Tourism shows signs of recovery

GMT 13:12 2015 Saturday ,09 May

Sheikh Sultan opens Sharjah Centre

GMT 20:02 2017 Tuesday ,21 February

Nohan Seyam designs beautiful accessories
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