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Argentina debt deal cleared by court

BBC News BBC News 13/04/2016
Mauricio Macri: Argentine President Mauricio Macri- who took office in December - has worked to reach a deal with the country's lenders © Getty Images Argentine President Mauricio Macri- who took office in December - has worked to reach a deal with the country's lenders

A US appeals court has cleared the path for Argentina to begin making payments on $9bn (£6.33bn) in bonds.

The decision paves the way for the country to re-enter bond markets after more than a decade.

A panel of judges rejected claims made from holdout creditors who had not accepted any of the offers made by Argentina to pay its debt.

The country will now be allowed to proceed to pay those claims that have been settled.

On Thursday it is due to pay off four of its biggest creditors.

However, first payments are only expected next week, when Argentina plans to start raising $12.5bn in new bonds to be issued internationally.

Settling the country's debt default has been one of the main campaign promises made by President Mauricio Macri, who came to power in December last year.

Holders of the bonds had refused part-payment offered by Argentina and were trying to stop it making payments in the hope of gaining the full amount.

Starting in 2005 the country began to workout deals to repay lenders reduced amounts.

It had reached settlements with 93% of its lenders, but certain holdout lenders refused to accept cuts to the original loan and interest they are due.

Argentina's last President, Cristina Fernández de Kirchner, called these holdout bondholders "vultures" and refused to negotiate with them.

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