Page 11 - Aruba Today
P. 11
WORLD NEWS A11
Friday 1 April 2016
Argentine Congress approves deal to end debt standoff in US
A demonstrator holds a sign that says in Spanish: “Traitors” outside Congress, directed at lawmak- ly Argentina. The issue was was issued, and won.
ers who approved new debt payment deal with U.S. creditors in Buenos Aires, Argentina. a central part of last year’s U.S. District Court Judge
presidential campaign. Thomas Griesa in New York
(AP Photo/Natacha Pisarenko) Macri and opponent Dan- repeatedly ruled against
iel Scioli, Fernandez’s cho- Argentina, saying the
sen successor, clashed country had to pay the
over whether a deal was holdouts before it could
necessary and who would pay other creditors holding
be the tougher negotiator. renegotiated debt. Those
The seeds of the dispute rulings kept Argentina from
go back to 2001-2002, accessing international
when Argentina default- credit markets, forcing it
ed on $100 billion in debt. to issue domestic bonds
Most holders of the original and search for backdoor fi-
debt, along with those who nancing from countries like
bought up bonds in the af- China.
termath, agreed to swaps During the years of fighting,
in 2005 and 2010 for bonds the initial debt ballooned
worth far less. But a group as other holdout groups
of creditors led by billion- began suing and legal fees
aire hedge fund manager mounted. The long, costly
Paul Singer refused. They dispute led to changes in
took Argentina to court in how debt is issued world-
New York, where the debt wide. q
P. PRENGAMAN to restart the continent’s
D. REY second largest economy,
Associated Press in large part by solving
BUENOS AIRES, Argentina a dispute so thorny it led
(AP) — After 13 hours of to changes in how debt
debate, Argentina’s Sen- contracts are restructured
ate voted early Thursday to worldwide.
overwhelmingly approve While Macri’s PRO par-
a deal with creditors in ty doesn’t control either
the U.S., putting an end to chamber in Congress,
a years-long dispute that most analysts had pre-
made the South Ameri- dicted the measure would
can nation a hard place pass because Argentina
to do business and kept it is strapped for cash and
from accessing desperate- needs foreign investment
ly needed financing. to begin growing after four
The deal, reached in late years of economic stagna-
February, had to be ap- tion. Still, it was clear during
proved by Congress. The the debate that nobody
House of Deputies passed would be celebrating.
it earlier this month. The “I will vote for this because
Senate began debating we are complying with a
Wednesday morning and sentence,” said Sen. Nor-
around 1 a.m. Thursday ma Durango from the op-
passed the measure 54-16. position Peronist Party. “But
Passage puts an end to a I’m not happy or at ease”
bitter chapter that made about it.
Argentina a financial pa- Macri’s predecessor as
riah and was often a point president, Cristina Fernan-
of sharp political clashes. dez, had refused to ne-
It’s also a boost for Presi- gotiate with the creditors,
dent Mauricio Macri, who which she called “vultures”
campaigned on promises and said were trying to bul-
