Argentina and holdout creditors have disclosed settlement of $4.65 billion cash payments that would end a 14-year-sovereign debt default dispute, one of the long standing battles over government debt in history. The deal is also seen as a way for the country to return to the international capital markets, and renew its thriving economy by attracting foreign investments.
The settlement of Argentina and holdout creditors took place over the weekend. On Monday, Daniel Pollack, the New York court-appointed mediator revealed that four of Argentina's biggest remaining holdout creditors that include Elliott Management, Aurelius Capital Management, Davidson Kempner and Bracebridge Capital will receive 75% payment including its principal and interest. The claims of the holdout investors amounted to $5.891 billion. Payment is due on April 14, according to Yahoo.
"By being a country that scoffs at the rule of law, they sacrifice so much," said billionaire Paul Singer, head of Hedge fund Elliott Management, reported Reuters.
The settlements between Argentina and Holdout creditors have reached a bottom where the former president Cristina Fernández de Kirchner called the investors vultures and financial terrorists. The deal comes after U.S. Judge Thomas Griesa lifted the ruling to allow Argentina to get back into the international capital markets.
