Argentina Sends Negotiation Team to NY With 3 Days Before Default

Argentina will send a negotiating team to New York on Monday for further talks with a U.S. court-appointed mediator in a debt dispute with ‘holdout’ investors, cabinet chief Jorge Capitanich said, with just three days to go to avert a default.

After a series of defeats in U.S. courts, Latin America’s No. 3 economy will default on its debt for the second time in 12 years if it fails to pay the New York hedge funds suing for full repayment on their bonds or reach a deal.

Negotiations have made scant progress in the past three weeks. If the deadlock persists, U.S. District Judge Thomas Griesa will prevent Argentina from making a July 30 deadline for a coupon payment on exchanged bonds, triggering a new default.

 
Argentina wants a stay of Griesa’s 2012 ruling ordering the Buenos Aires government to pay the holdouts. The holdouts bought Argentine junk bonds on the cheap after its $100 billion default in 2002 and then rejected the terms of restructuring.

“The negotiations are extremely complicated and need time. For this reason Argentina wants a stay,” Capitanich told reporters.

via Reuters

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