06:05 GMT23 October 2020
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    Argentina made its first debt payments to lenders on Friday with whom it had unsettled disputes since 2001.

    MEXICO CITY (Sputnik) – The payments total $9.3 billion, according to Argentina’s La Nacion daily. The first tranche of $6.2 billion has been transferred to the 20 US hedge funds that agreed to Buenos Aires’ terms before the end of February.

    The remaining $3.1 billion are planned to be place in the Bank of New York trust to repay the remaining 7 percent of the holdouts that could agree to Argentina’s terms in the future.

    Michael Paskin, who represents Argentina’s interests in New York, has informed the local court of his client’s financial commitments to pave way toward the lifting of restrictive measures.

    Earlier in the day, New York Judge Thomas Griesa lifted the injunction that triggered a 2014 "selective default."

    Argentina went through three major debt crises in 1982, 1988 and 2001, with the latest $100 billion default declared the largest in the South American country's history.

    Buenos Aires restructured 93 percent of its debt, but the creditors holding the remaining 7 percent of the bonds did not accept Argentina’s proposal and filed a lawsuit, demanding full payment. A New York court ruled in 2014 that Argentina had to pay $1.33 billion to its 2001 bond holders who did not agree with restructuring deal, including NML Capital, Aurelius Capital Management, Elliot Management, Davidson Kempner and Bracebridge Capital.

    Last summer, US District Judge Thomas Griesa ruled that Argentina must pay $5.4 billion to its bondholders in addition to the $1.33 billion it owed.

    Finance Minister Prat-Gay said early last month Argentina had reached a $4.65 billion deal with holdout creditors, putting an end to its 2001 default crisis.

    On Tuesday, Argentina sold sovereign bonds valued at $16.5 billion for the first time in 15 years since being shut out of the global debt market by Griesa. The return came less than a week after the US District Court of Appeals in Manhattan upheld a judicial ruling to lift an injunction that has barred Argentina from repaying its holdout creditors.


    Argentina Appeals US Court Decision on $5.4 Bln Payment to Debt Holders
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