Argentina can resume payments on the debt after the fulfilment of two conditions

Argentina can resume payments on the debt after the fulfilment of two conditions


BUENOS AIRES, March 3. /Corr. Elena Kondratieva/. Superimposed on Argentina’s ban on payments on the bonds will be withdrawn as soon as Buenos Aires will fulfill the necessary conditions. This was announced on Wednesday U.S. judge Thomas Gries.

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“Circumstances have changed so much that the ban should be considered unjust and harmful to public interests”, – quotes the words of the judge, the newspaper Nacion.

Thus, Gries did not satisfy the petition of several creditors asked the judge to postpone the cancellation of resolution for a month to Argentina agreed with the rest who refused the restructuring funds. So far Buenos Aires has reached an agreement on the settlement of debt with 85% of creditors.

Before the ban will be finally lifted, Buenos Aires, you must fulfill two conditions. First of all, the Argentine Parliament should vote for the repeal of two laws that do not allow payments refused from restructuring funds. In addition, Buenos Aires should implement the agreements reached with creditors until 29 February. In particular, it concerns the payment of $4.6 billion of debt to the core group of plaintiffs led by the Fund Elliot Management Paul singer.

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In 2005 and 2010, Argentina restructured 93% of its debt, left a legacy after the largest default in history in 2001. The owners of the bonds was offered to exchange for new papers with discount about 70% compared to original cost. However, the owners of the other 7% debt securities, comprised mainly of speculative investment funds, the cancellation is not agreed.

Buenos Aires was carried out some payments through one of the new York banks, being thus under the jurisdiction of the American justice system. The court in new York came to the defense of the interests who refused the restructuring of creditors, ordered Argentina to pay the debt in full and ruled that Buenos Aires must not make payments until you pay with these foreign hedge funds.