Newspaper article International New York Times

Argentina Hopes to Settle Debt Dispute

Newspaper article International New York Times

Argentina Hopes to Settle Debt Dispute

Article excerpt

The dispute, which has left Argentina largely cut off from international markets, still promised a few twists as a new round of talks took place this week.

After a bitter face-off for more than a decade between Argentina and a group of disgruntled New York hedge funds, both sides have come to the negotiating table with fresh hopes of a resolution.

But the dispute, which has left Argentina largely cut off from global markets, still promised twists as a new round of talks took place this week in New York.

On Tuesday, Argentina struck a deal to pay $1.35 billion to a group of Italian investors on whose bonds the country defaulted in 2001, according to news reports. The deal is the first settlement with so-called holdout creditors who have not participated in earlier restructurings over debt from nearly 15 years ago. But Argentina has yet to come to an agreement with the New York hedge funds -- holdouts led by the billionaire Paul E. Singer's Elliott Management.

A stalemate involving the creditors and a former Argentine president, Cristina Fernandez de Kirchner, led the country to default on its debt again in 2014. The new administration of President Mauricio Macri has indicated that it wants to resolve the debt as part of an overhaul of Argentina's economy.

Luis Caputo, the newly appointed finance secretary, and other senior government representatives met this week with principals at the hedge funds -- including Elliott's NML Capital, Aurelius Capital Management, Montreux Equity Partners, Dart Management and Davidson Kempner Capital Management-- in Manhattan, according to a court- appointed arbiter, Daniel A. Pollack. The group is seeking a resolution for claims totaling around $9 billion, he added.

In dispute is how much Argentina should pay in interest.

At a news conference in Buenos Aires announcing the deal with Italian bondholders, Argentina's economy minister, Alfonso Prat- Gay, touched on the question of interest payments. …

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