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Argentina Agrees to Pay $1.35 Billion to Italian Holdouts

  • Agreement covers 50,000 holders of $900 million in bonds
  • Italian group had sought $2.5 billion in compensation
Updated on

Argentina agreed to pay $1.35 billion in cash to a group of Italian investors who hold its defaulted bonds, marking the first time the Latin American nation has reached an accord with holdout creditors who refused to participate in earlier restructurings.

The amount that will be paid under the deal represents 54 percent of the creditors’ claim of $2.5 billion in principal and interest on notes Argentina defaulted on in 2001. They agreed to accept payment of 150 percent of the $900 million in face value, according to a statement from Task Force Argentina, an Italian bondholder association known as TFA. The accord is pending approval from Argentina’s congress and TFA board members.