FINEWS-Argentina confirms $3.52 bln payment on GDP-linked warrants
Argentina will pay just over $3.52 billion to holders of the country's GDP warrants as scheduled on Monday, Economy Minister Hernan Lorenzino said.
"It's the biggest debt payment of the year and it's also the biggest payment to private sector creditors that Argentina has made since the 2001 crisis," he told a news conference. The growth-linked securities were issued as part of two debt exchanges following a massive 2002 sovereign default.
Monday's debt payment was thrown into doubt by an October U.S. court ruling that said the country violated a bond provision requiring it treat all creditors equally when it paid the exchange bondholders without paying "holdout" creditors who spurned the debt restructurings and sued to be paid in full.
However, an appeals court granted Argentina a reprieve last month, quelling fears of a default on Monday's GDP warrant payment that arose from the idea that U.S. courts could have disrupted the payment to enforce the October ruling. [I D :nL1E8N470S]
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