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Montevideo, March 23rd 2019 - 14:44 UTC

Argentina confirms payment to bondholders at the end of September

Monday, September 15th 2014 - 06:23 UTC
Full article 45 comments
Kicillof said the coupon will be paid based on a bill approved last week which allows for location transfer Kicillof said the coupon will be paid based on a bill approved last week which allows for location transfer

Argentina will pay holders of its restructured sovereign debt, thanks to a bill passed by its Congress last week despite a US court ruling, the country's economy minister told a local radio show on Sunday.

“With the law we have assured that the next coupon payment, due in a few days at the end of September, will be once again paid by us. So there can be no talk of default,” Axel Kicillof said on Radio Nacional Rock.

Argentina's Congress passed a bill (Sovereign debt) on Thursday designed to enable the government to resume debt payments to bondholders in defiance of a US court ruling that tipped the country into default earlier this year.

The ruling allows the government to make payments on an estimated 29b dollars in foreign-held bonds either in Argentina or elsewhere out of US jurisdiction, for example France.

The government is racing against the clock to make a 200 million dollar coupon payment due on Sept 30.

US Judge Thomas Griesa ruled that Argentina must settle a legal fight with a group of New York hedge funds (holdouts) over unpaid debt from a massive 2002 default before servicing its performing debt.

Griesa has called the government's new debt plan illegal but has stopped short of placing Argentina in contempt.

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  • golfcronie

    Thats the way to go Argentina , flouting international law, you have been warned that it is illegal, the legal system will take you to account when you try or pay the original bondholders outside USA jurisdiction, and not before.

    Sep 15th, 2014 - 09:06 am 0
  • Captain Poppy

    I still fail to see how they will have the bondholders record. Beyond the scenes they are feverishly demanding this information all the while telling the public they will make this payment.......sure they will when BNY turns this information over.

    Sep 15th, 2014 - 09:35 am 0
  • hurricane

    The bond holders will never agree to accept their money through another bank because by doing so they are agreeing that the US has no jurisdiction. It would take at least some super majority to do so which they will not get, so all this rhetoric is just nonsensical and will have a high price with the public when it is known as such.

    Sep 15th, 2014 - 09:50 am 0
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