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Argentina to pay Italian bond holders with 'reasonable interest'

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Staff writer ▼ | February 4, 2016
Argentina said it reached a $900 million preliminary accord to settle its pending debt with 50,000 Italian holders of defaulted Argentine government bonds.
Alfonso Prat-Gay
LatAm   A $900 million preliminary accord
Finance minister Alfonso Prat-Gay said that the agreement with Italian bondholders includes the Argentine government's acknowledgement of the debt “and reasonable interest”.

”It represents approximately 15% of the debt that remained outside the (rescheduling) accords“ Prat-Gay told a press conference in Buenos Aires.

A joint communiqué issued by the Argentine government and Task Force Argentina, which gathers together the Italian creditors, said the proposed accord ”opens the possibility of strengthening the strong ties between Argentina and Italy, as well as investment between the two countries.“

Task Force Argentina which represents 50,000 Italian bondholders that agreed to the deal, said in a statement that the government would pay cash to settle about $900 million in defaulted debt, plus interest.

It said the total amount is equivalent to about 150% of the original principal, or $1.35 billion.

The Italian bondholders had sought about $2.5 billion from Argentina during arbitration at the World Bank's International Centre for Settlement of Investment Disputes, or ICSID.

Task Force Argentina indicated claims by the Italian bondholders will be dismissed.


 

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