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.
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