Telesur.png

 

 

Argentina Caves In on Vulture Funds

 

 

Telesur, Venezuela, 31 March 2016

 

Argentina's President Mauricio Macri won the support of the Senate for a
settlement with bondholders on Wednesday, live TV images showed, marking the
end of a 14-year battle with creditors.

 

Senators across the political divide voted by a 54 to 16 margin in favor of
a deal after a marathon debate that lasted more than 12 hours.

 

It allows Macri to issue $12 billion in bonds and use part of that to pay
$4.65 billion to the hedge funds. Hedge funds had sued Argentina for not
paying out on bonds they bought after the country defaulted on its debt 15
years ago.

 

The lower house of Congress already approved the deal earlier this month.

 

Macri needed to close the dispute to tap global credit markets and lure back
investors, and had warned Argentina faced a return to hyperinflation or
aggressive spending cuts if the chamber had knocked down the proposal.

 

Argentina's 15-year battle with vulture funds stems from the fact that a
handful of holdout creditors rejected the debt restructuring that followed
Argentina's US$100 billion debt default in 2002. 

 

Under former President Fernandez, the country refused to pay the vulture
funds, and saw some success in U.S. appeals courts.

 

 

From:
http://www.telesurtv.net/english/news/Argentine-Senate-OKs-Predatory-Vulture
-Funds-20160330-0055.html

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

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