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Special Report - Argentina: the face of post-Kirchnerismo (ISSN 17414474)
Settling with the holdout creditors
The long legal dispute between Argentina and the hold-out creditors was unfinished business left by the outgoing government of President Fernández, which consistently refused to settle the demands of what it called the ‘vulture funds’. The roots of the dispute lay in the fact that roughly 93% of Argentina’s creditors had in 2005 and 2010 accepted the terms of a rescheduling offer after the default of 2001/02– which involved a “hair-cut” or write-down of approximately 70% - but the remaining 7% had not. As most of the debt contracts lacked collective action clauses, it was not possible for the terms of the majority-backed deal to be imposed on the minority. In addition, because many bonds were issued under New York law a way was left open for the minority to seek legal enforcement for payment in full. Some hedge funds saw this as a clear speculative opportunity, buying heavily discounted Argentine bonds in 2002 and subsequent years with a view to taking legal action and seeking to make a large profit if they could eventually be sold at prices closer to face value.
- The face of post-Kirchnerismo
- An exhausted model
- The four moments of the 2015 elections
- An overview of Macri’s first 100 days
- Lifting the cepo cambiario and tackling macroeconomic imbalances
- Settling with the holdout creditors
- Question mark over inflation and labour relations
- Prison break puts focus on security and crime policy
- The problem of corruption and justice
- Debate over press freedom and media concentration
- Low key repositioning under way