Argentina intends to repay its debt obligations in foreign currencies through the central bank in the local market, reports Bloomberg.
This strategy will allow the country to circumvent the court’s decision the United States, who last month blocked the payment.
The Government will submit to Parliament a bill that would allow foreign bondholders to exchange for new paper. According to President Cristina Fernandez de Kirchner, the new bonds will be transferred to national jurisdictions, with the existing parameters of the issue.
Currently, Bank of New York Mellon Corp. trustee acts on the bonds of the country. Investors who refuse to exchange securities will also be able to receive payments through the National Bank, the President noted.
“This is a plan ‘B’, – says principal analyst Bulltick Capital Markets Alberto Bernal. – I wonder whether it will agree to investors.”
Recall, Argentina was in default for the second time after 13 years. In 2001, Argentina was unable to pay its debts to creditors totaling approximately $ 95 billion, a record declaring default in world history.
In 2005 and 2010. Argentina offers investors to exchange old debt for new securities at a discount from 75% to 79%. More than 92% of creditors of Argentina agreed to loss of 25-29 cents per dollar of investment. However, a group of investors led by hedge fund Elliott Management Corp. began to defend their interests in the courts
Earlier, the United States District Court Judge Thomas Griza ordered Bank of New-York Meloon send back payment of Argentina in the amount of $ 539 million on account of interest on the restructured debt.
American Court decided the first thing to pay its debts c “dissenters”, ie those who did not go to debt restructuring.