NEW YORK (Reuters) – International banks are struggling to reach a deal to buy a chunk of Argentine sovereign debt held by New York hedge funds suing the country, dampening market hopes for a swift end to the country’s latest debt default.
Citigroup (C.N: Quote, Profile, Research, Stock Buzz), Deutsche Bank (DBKGn.DE: Quote, Profile, Research, Stock Buzz), HSBC (HSBA.L: Quote, Profile, Research, Stock Buzz) and JP Morgan (JPM.N: Quote, Profile, Research, Stock Buzz) offered the holdout hedge funds 40 cents on the dollar for the roughly $1.66 billion of bonds, including interest, and raised the offer to 50 cents on Monday, sources told Thomson Reuters IFR.
NEW YORK (Reuters) – Daniel Pollack, the court-appointed mediator in the debt dispute between Argentina and holdout creditors, who has come under fire from the Argentine government for his handling of the talks, expects to hold more meetings with both sides.
U.S. District Judge Thomas Griesa appointed Pollack, an experienced New York lawyer, as Special Master in the long-running dispute that dates back to Argentina’s near $100 billion sovereign debt default in early 2002.
NEW YORK (Reuters) – Italian retirees holding defaulted Argentine debt from 2002 and who spurned Buenos Aires’ restructuring offers are seeking to force Bank of New York Mellon to pay out their court judgments from frozen money due holders who accepted the government’s terms.
In a further twist in the long-running sovereign debt dispute that has pushed Argentina once again into default, these so-called “other” holdouts said in a court filing late Thursday that the $539 million deposit that Argentina made to its indentured trustee, BNY Mellon, should go toward satisfying their U.S. court-awarded claims.
NEW YORK (Reuters) – The euro weakened on Thursday, undermined by the European Central Bank’s saying it would leave interest rates unchanged at record lows and that the fragile economic recovery will keep the loose policy in place for an extended period.
The ECB’s decision was not unexpected by the market, and it heightened the contrast in monetary policy, with the euro zone moving toward easing and the United States moving toward tightening on an improving economic outlook.