Page 11 - atoday
P. 11
WORLD NEWS A11
Tuesday 1 March 2016
Argentina and US creditors reach deal in longstanding spat
PETER PRENGAMAN ereign nation. Argentina’s Finance Minister Alfonso Prat-Gay, left, talks during a press conference, next to Ar-
Associated Press Under the deal, Argen- gentina’s Finance Secretary Luis Caputo, in Buenos Aires, Argentina, Monday, Feb. 29, 2016.
BUENOS AIRES, Argentina tina would pay $4.653 bil-
(AP) — Argentina and a lion to resolve all related (AP Photo/Natacha Pisarenko)
group of U.S. creditors an- claims, including those
nounced a deal Monday in from Singer’s group in
a longstanding debt stand- New York and other credi-
off, potentially breaking an tors around the world. The
impasse that has kept the agreement would pay the
country on funds managed by Elliot,
the margins of international Aurelius Capital, Davidson
credit markets and led to Kempner and Bracebridge
a rewriting of the terms of Capital about 75 percent
debt issuance and nego- of their full judgments, ac-
tiations worldwide. cording to the statement.
The deal is a boost for Presi- Speaking to reporters in
dent Mauricio Macri, who New York,
assumed power in Decem- Pollack declined to provide
ber after campaigning more details. He said April
on promises to modernize 14 was the deadline to fin-
South America’s second- ish the deal, but added
largest economy by solving that it could be extended if
the dispute and attracting both sides agreed. He de-
foreign investment. scribed grueling negotia-
“It gives me greatest plea- tions in recent months, jok-
sure to announce that the ing that it “felt like a thou-
15-year pitched battle sand years to me.”
between the Republic of The deal “closes a chapter
Argentina and Elliott Man- by putting an end to the
agement, debt default saga which
led by Paul E. Singer, is now limited Argentina’s access
well on its way to being re- to international capital
solved,” arbiter Daniel A. markets,” said Alberto Ra-
Pollack said in a statement. mos, chief Latin America
The agreement still must economist for Goldman
be approved by Argen- Sachs, predicting that it
tina’s Congress, which would also lead to an influx
would also need to revoke of investment in Argentina.
or sharply modify two laws Hours after the announce-
that in practical terms ment, the stock exchange
would make the deal diffi- in Buenos Aires closed with
cult to implement. a 1.5 percent rise, which
The “Lock Law” prevents analysts said was a sign
Argentina from offering that investors were cau-
one group of creditors a tiously optimistic the dis-
better deal than others pute is on its way to being
and the “Sovereign Pay- solved.
ment Law,” passed in 2014, The debt conflict goes
allowed Argentina to pay back to Argentina’s 2001-
creditors with renegotiated 2002 financial collapse,
debt in the face of a New when it defaulted on $100
York court order not to do billion in bonds.
so. Most creditors renegotiat-
The 2014 law was passed ed in 2005 and 2010 bond
at the behest of then Presi- swaps. But a group of cred-
dent Cristina Fernandez, itors led by Singer, a billion-
who refused to negotiate aire hedge fund manager,
with bondholder groups refused and took Argen-
that she called “vultures,” tina to court in New York,
casting the fight as a U.S. under whose laws the debt
court trying to bully a sov- was issued, and won.q
