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| Argentina settles creditor dispute with £3.3bn deal | Argentina settles creditor dispute with £3.3bn deal |
| (35 minutes later) | |
| Argentina has reached a $4.65bn (£3.3bn) agreement to settle a dispute with creditors, a move that could help to revive its economy. | Argentina has reached a $4.65bn (£3.3bn) agreement to settle a dispute with creditors, a move that could help to revive its economy. |
| The country has been in dispute with holdout creditors, led by US hedge fund Elliott Management, who are demanding to be paid in full on debt that Argentina defaulted on in 2001. | The country has been in dispute with holdout creditors, led by US hedge fund Elliott Management, who are demanding to be paid in full on debt that Argentina defaulted on in 2001. |
| The deal, agreed by a US court-appointed mediator, will see the holdout group take a 25% haircut on their claims. | The deal, agreed by a US court-appointed mediator, will see the holdout group take a 25% haircut on their claims. |
| “This is a giant step forward in this long-running litigation, but not the final step,” said the mediator, Daniel Pollack. | “This is a giant step forward in this long-running litigation, but not the final step,” said the mediator, Daniel Pollack. |
| A final settlement would open financing options to Argentina’s new president, Mauricio Macri, as he tries to improve the country’s dire fiscal situation without imposing the kind of sharp spending cuts that have seen previous Argentinian leaders removed from office. | A final settlement would open financing options to Argentina’s new president, Mauricio Macri, as he tries to improve the country’s dire fiscal situation without imposing the kind of sharp spending cuts that have seen previous Argentinian leaders removed from office. |
| Related: Argentina's former president suspected of role in peso inflation scheme | |
| Macri was elected in November promising free-market policies after eight years of protectionism under Cristina Fernández de Kirchner, who refused to negotiate with hedge funds suing the country over its defaulted bonds. | Macri was elected in November promising free-market policies after eight years of protectionism under Cristina Fernández de Kirchner, who refused to negotiate with hedge funds suing the country over its defaulted bonds. |
| The holdouts rejected two previous restructurings in 2005 and 2010 that paid out roughly 30 cents on the dollar. | The holdouts rejected two previous restructurings in 2005 and 2010 that paid out roughly 30 cents on the dollar. |
| On Tuesday Macri will preside over the opening of the 2016 congressional session. In his speech to politicians he is expected to stress the need for Congress to approve a set of bills clearing the way for a deal. | On Tuesday Macri will preside over the opening of the 2016 congressional session. In his speech to politicians he is expected to stress the need for Congress to approve a set of bills clearing the way for a deal. |
| The holdout creditors are likely to be paid from the proceeds of a large government bond offering. | The holdout creditors are likely to be paid from the proceeds of a large government bond offering. |
| Argentina offered a pot of money, $6.5bn, to settle the claims filed in the US courts that amounted to about $9bn. | Argentina offered a pot of money, $6.5bn, to settle the claims filed in the US courts that amounted to about $9bn. |