Argentina presents debt proposal in New York
Following a week of intense talks in New York between representatives of the federal government and so called “vulture” funds, the Revenue and Finance Ministry issued a statement announcing Argentina has made a formal offer to holdouts suing the country over its defaulted bonds more than a decade ago.
"The proposal implies a 25 percent cut" of the amount awarded by US courts, the ministry said, after five days of closely watched talks in New York between Finance Secretary Luis Caputo and the creditors.
“This is the first time Argentina makes a formal offer to holdouts,” the statement reads adding the restructuring agreement “has already been accepted by some funds such as Montreaux Partners or Dart Management.”
Earlier today, Daniel Pollack, the mediator in Argentina's decade-long legal battle with creditors over unpaid debt, said he would issue a "significant statement" later today after presiding over the New York negotiations between the two sides.
The festering dispute in US courts is one of the longest in sovereign bond restructuring history, stemming from Argentina's historic default on $100 billion in 2002.
"A significant statement .. will be coming today," US court-appointed mediator Daniel Pollack said in a statement.
Argentina restructured nearly 93 percent of its defaulted debt in 2005 and 2010 swaps that gave creditors 25 cents to 29 cents on the dollar.
A small group of creditors rejected the terms of the swaps however and demanded full payment. A US court ruled in their favor and banned Argentina from making payments on its restructured debt until it also paid the so-called holdouts.
Argentine bonds climbed this week as talks advanced between Argentine Finance Secretary Luis Caputo and the creditors, who have filed about $9.9 billion in claims in total.
The defaulted 2038 dollar Par bond US040114GK09=R hit a high of 63.144 cents on Friday, 5.4 percent higher than the start of the week, Thomson Reuters data showed.