The Argentine government made official the accord reached with the holdout funds sponsored by a New York federal court, to pay for defaulted bonds in a fifteen year litigation, following the approval of the bill by the Senate. This means Argentina can now look for funds in the international monetary market.
Law 27249, promulgated by Decree 539/2016 was published last Friday in Argentina's Official Gazette and signed by Acting president and vice-president Gabriela Michetti, cabinet chief Marcos Peña and Economy and Finance minister Alfonso Prat Gay. President Macri was in Washington attending a nuclear security summit with fifty two world leaders, including Obama and Xi Jinping.
The bill finished its congressional discussion when it was approved last Thursday by the Senate, which overruled the so called 'padlock and 'sovereign payment' bills from the previous Cristina Fernandez administration. The bill also authorizes the government to issue US$ 12.5bn to pay bondholders and other commitments.
The Senate approved the bill following fourteen hours of debate by 54 votes to 16 (out of 72). It also rejected attempts by the opposition to introduce modifications to the original draft sent by the Executive. Although president Macri's coalition Let's Change only has 15 senators, he finally managed the ample majority with independent lawmakers and mainly 26 of the 42 who theoretically respond to Cristina Fernandez' Victory Front, FPV.
In effect the 16 negative votes belonged to the hard-core FPV grouping. But Miguel Angel Pichetto head of the FPV Senate block crossed the line and supported the government initiative.