Argentina and US hedge funds agree to end 15-year-old debt strife

New York, Jumada I 20, 1437, February 29, 2016, SPA — Argentina reached an agreement with a group of US hedge funds that were suing the nation in connection with the country’s 2001 debt default, according to dpa.

“The 15-year pitched battle between the Republic of Argentina and Elliott Management, led by Paul E Singer, is now well on its way to being resolved,” Daniel Pollack, the mediator in the case, said Monday in a press release.

“The parties last night signed an Agreement in Principle after three months of intense, around-the-clock negotiations,” he added.

The agreement calls for a total payment of 4.7 billion dollars to NML Capital Ltd, the fund managed by Elliott, and several other funds of other managers who had sued alongside NML.

President Mauricio Macri, who took office in December, is seeking to settle lawsuits with bondholders who have refused Argentina’s past attempts to restructure a 95-billion-dollar default. The lingering lawsuits have impaired the government’s plans to borrow in global capital markets.
–SPA
22:49 LOCAL TIME 19:49 GMT