Instituto Técnico Superior Comunitario

Argentina Agreement With Bondholders

By septiembre 11, 2021 No Comments

Many creditors who have bet in recent years on the recovery of the Argentine economy lost money when the government took restructuring measures and lost value. But some investors have bought themselves at depressed prices and will make profits during the restructuring, people familiar with the matter said. “What Argentina will show in 2020 is that the Holdout saga from 2005 to 2016 was an outlier,” he said, referring to Argentina`s dispute with creditors, which kept it excluded from international markets for a decade at the beginning of this century. “We have reached an agreement that both parties can live with,” said Graham Stock, senior Emerging Markets Strategist at Bluebay Asset Management, who participated in the discussions. “To say they`re happy with it would be an exaggeration, but they can live with it, and it`s the result of a compromise.” Three main groups of creditors said in a joint statement that they were pleased to have reached an agreement in principle with the government and that all creditors should support the agreement. Two of these groups, the Argentine Group Exchange Bondholder and the Committee of Creditors of Argentina, reaffirmed their support in separate statements. On August 31, Argentina obtained almost unanimous approval from its bondholders to restructure $65 billion in foreign debt after months of savings. The country`s government bonds were traded this month and have already fallen to troubled levels. In 2005 and 2006, Banco Occidental de Descuento and Fondo Común, respectively owned by Venezuelan bankers Victor Vargas Irausquin and Victor Gill Ramirez, bought most of the outstanding Argentine bonds and resold them on the market.

[38] The banks bought $100 million of Argentine bonds and resold the bonds with a profit of about $17 million. [41] Critics of Vargas said he struck a $1 billion backroom deal with Argentine bond swaps as a sign of his friendship with Chávez. [42] The Financial Times interviewed financial analysts in the United States who stated that banks benefited from the resale of bonds; the Venezuelan government did not take advantage of it. [41] This agreement is the result of several months of negotiations between the government and major investment firms such as BlackRock Inc., Ashmore Group Plc and Fidelity Investments, and is the first step towards stabilizing a failing economy. Inflation is close to 45%, the peso has lost more than half of its value in just a few years and gross domestic product will contract for the third year in a row. Eduardo Levy Yeyati, an economist at Torcuato Di Tella University, said the good result underscores the important role of CACs, like a recent successful restructuring in Ecuador. For the purposes of section 21 of the Financial Services and Markets Act 2000, this Notice, to the extent that this Notice constitutes an invitation or inducement to participate in an investment activity, falls within the scope of section 34 of the Financial Services and Markets Act 2000 (Financial Promotion) 2005 (“Financial Promotion Order”), a non-real-time communication communicated by controlled facilities and which applies only to controlled investments (b) 1999, 1994, 1994, 1990, 1990, 1990, 1990, 1990, 1990.