Give paz a chance

29 November 2012 By Reynolds Holding, Raul Gallegos

A U.S. court has put on hold an order forcing the nation to pay holdout bondholders. That creates a window to settle an 11-year debt dispute that has blocked Argentina from global capital markets. Compromise could help the country’s economy and affirm that a deal is still a deal.

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Money‚ Markets & Macroeconomics

Regions

Context News

A U.S. appeals court on Nov. 28 granted an emergency stay that gives Argentina time to argue against paying $1.33 billion to investors who rejected two restructurings of its debt following a default in 2001.
The decision follows a Nov. 21 ruling by U.S. District Judge Thomas Griesa that requires the South American government to pay NML Capital and Aurelius Capital Management $1.33 billion by Dec. 15.
Argentina offered bondholders of its defaulted debt 30 cents on the dollar in two separate debt exchanges in 2005 and 2010. After the second offer, 93 percent of the original bondholders accepted the debt exchange.

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