Argentine Congress approves deal with holdout creditors

Staff Writer
Columbus CEO

BUENOS AIRES, Argentina (AP) — The lower house of Argentina's Congress has approved the government's deal with holdout-creditors — a measure meant to give the country access to global credit markets.

The measure approved Wednesday now goes to the Senate for final approval.

The government lacks a majority in both houses of Congress, but won over a part of the Peronist opposition.

Under the deal, Argentina would pay $4.7 billion to resolve all related claims stemming from bonds issued in the U.S. before Argentina's 2001-2002 financial collapse, when it it defaulted on $100 billion in bonds.

Most creditors renegotiated in bond swaps in 2005 and 2010. But a group of creditors refused to take lower-value bonds. U.S. courts rejected Argentina's attempt to force those creditors to accept cut-rate terms.