Thursday, March 31, 2016

Outstanding debt: Argentina Parliament approves payment to … – ABC Online

Thursday, 03.31.2016, 09:06
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After years of tug of war in the debt dispute has cleared the last parliamentary hurdle with several US hedge funds the agreement of the Argentine government. The country will pay 75 percent of the original request of the Fund total.

The Argentine Parliament has given an agreement in the debt dispute with US hedge funds green light. The Senate has been abolished in Buenos Aires early on Thursday (local time) by a large majority two laws which blocked the payment.

At the same time the government of the Heads of State Mauricio Macri was authorized bonds over 12.5 billion dollars (11 take billion euros) in order to pay off the outstanding debts. The Chamber of Deputies had the bill been adopted.

state bankruptcy by the end of 2001

In the conflict is about debt from the state bankruptcy of the end of 2001, their redemption by the New York hedge fund NML Capital had sued cited creditor group. NML Capital is part of the Elliott-financial empire of US billionaire Paul Singer.

A ruling by New York Judge Thomas Griesa had given the funds legally. Moreover Griesa 2014 Argentina had forbidden to operate other creditors, as long as the debt at the hedge funds were not paid. Argentina fell so in a so-called “technical insolvency”.

75 percent of the originally requested sum

The funds came in late February with the government Macris an agreement in principle, after Argentina’s debt with will pay 75 percent of the originally requested sum. Overall, Argentina has committed to 14 April to pay about 12 billion dollars (10.6 billion euros).

The vote in Parliament was a prerequisite in order to put the agreement into force. Macris predecessor Cristina Fernández de Kirchner had persistently refused to settle the claims of hedge funds. The dispute was fought in US courts because the bonds were issued under US law

Hedgfonds manager Singer -. This man pushing Argentina into bankruptcy


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