Home > World > Argentina Offers To Pay $9 Billion In Cash To Settle 14-Year Credit Dispute
World

Argentina Offers To Pay $9 Billion In Cash To Settle 14-Year Credit Dispute

By February 6, 2016 at 11:09 pm
Argentina Offers To Pay $9 Billion In Cash To Settle 14-Year Credit Dispute (Photo : Quique Kierszenbaum | Getty Images News)

BUENOS AIRES, ARGENTINA - The government of Argentina has offered to pay $9 billion in cash on Friday to settle its credit dispute with investors who sued the country because of defaulted bonds. It seeks to end the 14-year legal case that has prevented it from accessing the international credit market.

"This is the first time Argentina makes a formal offer to the holdouts," said the country of Argentina in a statement.

In 2002, the country's economy collapsed, prompting the government to sell bonds to investors who bought the bonds at big discounted rates.

However, the legal battle occurred less than two months after President Mauricio Macri assumed his position, promising to be committed to the deal.

According to BBC, Argentina made an official proposal to pay 75 percent of the amount, which was given by U.S. courts back in 2012, five days after Finance Secretary Luis Caputo led the negotiations in New York.

"The agreement was awesome," Caputo said after coming out from the office of the mediator in New York. "We have had a good reception of the proposals and I feel optimistic."

Daniel Pollack, a mediator appointed by the court, said two out of six major creditors accepted the offer that is considered to be something significant for the Latin America's business-friendly government.

"This litigation has gone on for nearly 15 years since the original Argentine default of 2001, and the proposal by Argentina is an historic breakthrough," Pollack wrote in a statement as stated in the article of Bloomberg Business.

If all the bondholders accept the offer, the country will be able to bounce back from its collapsed economy and return to global capital markets, financing Argentina's infrastructure projects like building new roads and railways, Reuters reports.

Like Us on Facebook