NEW YORK, Aug 12 (IFR) - Argentina's holdout creditors and
international banks are struggling to strike a deal on the
sovereign's debt, sources close to the situation said on
Citi, Deutsche Bank, HSBC and JP Morgan last week offered
the holdouts 40 cents on the dollar for the roughly US$1.66bn
bonds, including interest, they own, and raised that offer to 50
cents on Monday, the sources said.
But that is way below the 80 cents that was first proposed
by banks last week.
"These are not fully-baked proposals," said a source from
one of the holdout firms -- hedge funds led by Aurelius Capital
and NML Capital.
"Our insecurity and the insecurity of the banks has been
that the government hasn't given any indications regarding price
points or structure once January hits," a source close to the
In January, the so-called RUFO clause is no longer valid.
Argentina has repeatedly said that it cannot offer better terms
to the holdout investors because it would trigger the RUFO
clause and expose it to billions of dollars worth of claims.
Talks between the banks and the holdouts have been ongoing
since July 30, when Argentina defaulted on its debt for the
second time in 13 years.
Sources close to the banks say talks are still ongoing.
Citigroup and JP Morgan declined to comment, while HSBC and
Deutsche Bank did not respond to requests for comment.
(Reporting by Joan Magee; Additional reporting by Davide
Scigliuzzo; Editing by Paul Kilby and Natalie Harrison)