Argentina Settles $677 Million Arbitration Cases With Bonds
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Argentina agreed to compensate five companies that won rulings over investment disputes as the nation looks for the World Bank to approve $3 billion in loans, sparking the biggest bond rally in emerging markets.
The companies agreed to accept payment in dollar bonds and to reduce the principal amount of their awards by 25 percent, the Economy Ministry said today in a statement. The country will hand over local law bonds due 2015 and 2017 with a face value of $506 million for the $677 million of claims, the ministry said. The bonds traded in secondary markets at prices of 95.57 cents and 87.72 cents on the dollar respectively at 2:51 p.m. in Buenos Aires, according to data compiled by Bloomberg.