Argentina advances bill to pay $171 million to two creditors amid opposition concerns

Argentina's ruling party, with support from allied parties, has moved forward with a bill authorizing a $171 million payment to two key creditors, Bainbridge and Attestor. These creditors are among those with active lawsuits against the nation. The agreement, which has already passed the Senate, aims to resolve outstanding litigation stemming from the 2001 default, prevent potential seizures of Argentine assets, and end creditor-initiated asset searches.

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We believe these are very beneficial agreements because they imply a substantial reduction on the claims creditors had.

Government officials, including the Secretary of Legal and Administrative Affairs of the Ministry of Economy, Juan Ignacio Stampalija, and the Treasury Prosecutor, Sebastián Amerio, defended the deal. They argued that the agreement represents a significant reduction compared to existing judgments against the state. For instance, Attestor reduced its claim from $160 million to $104 million, and Bainbridge from $96 million to $67 million. "What is being done is paying less," Stampalija stated.

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What is being done is paying less.

Officials rejected characterizations of the deal as a new debt restructuring, emphasizing it's about settling lost lawsuits for a reduced amount. They indicated the understanding would largely close remaining litigation related to the 2001 default. However, the main objections came from the Unión por la Patria bloc, which issued a minority report. Julia Strada questioned the lack of precise details about the agreement, asserting that Congress lacks crucial information regarding the negotiation. Her colleague, Itai Hagman, objected to the congressional process itself.

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We are paying lawsuits that we lost and we are making an agreement to pay less for those lawsuits.