US District judge hints possibility of lifting injunction in Argentina debt dispute

The U.S judge that caters the case of Argentina's defaulted bonds has showed his willingness to lift the injunctions provided that he still has the jurisdiction towards the case. This particular ruling has restricted Argentina to pay its international debts.

According to US District Judge Thomas Griesa, it would be for the public's interest to do away with the injunction, but Argentina should agree to pay its creditors as well as revoke two laws that is related to this issue. Greisa also acknowledged the sincerity and good faith Argentina has shown towards the handling of its debts.

Paul Singer, fund manager at NML Capital Ltd., is only one of the 49 complainants who demanded a full payment from the Argentinian government. But as of the moment, Griesa clarified that he cannot leave the injunctions due to the pending appeal by Argentina to the 2nd US Circuit Court of Appeals in Manhattan, as per Reuters.

According to experts, this move by Griesa is a victory for the country who has been struggling to return to its global capital market. The earlier ruling states that it should pay the bondholders in full, but some of this bonds were not restructured in the 2005 and 2010 debt swaps. He added that the turning point of his decision was the recent election of Mauricio Macri as the new president. Macri has worked towards the settlement of this debts for the improvement of the country's economy.

In the meantime, Griesa didn't offer any opinion on the issue regarding Argentina's settlement plan. However, Bloomberg noted that he recognized the Republics earnest effort to negotiate and its willingness to change its attitude towards engaging into settlements since the Macri Administration.

According to the Wall Street Journal, the Argentinian government has been barred from raising money in the international bond market since it has been defaulted in 2001. A total of $80 billion worth of government bonds, which was considered the largest, was defaulted at that time.

A number of bondholders have agreed to the settlement through mediation led by the court appointed arbiter Daniel Pollack who Griesa said would be a great addition to the resolution of the case.

Tags

Argentina, Argentina's international bonds, Argentina's international debts, US District Court, US District Court Judge, Thomas Griesa, President Mauricio Macri

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