Fulfilling a campaign promise, President Mauricio Macri authorized the sale of US$15 billion in bonds to rake in the cash the government needs to pay its hedge fund creditors known as the “vulture funds.”
The first offer took place in London early Monday morning, where top Argentinean officials visited last week to convince investors.
“We expect to close all the deals by Monday evening,” sources at foreign banks that will negotiate the bonds — Deutsche Bank, HSBC, JP Morgan, Santander, BBVA, Citigroup, and UBS — told Argentinean news agency Télam.
- Deal with Holdouts Marks the End of Argentina’s Debt Crisis
The Macri administration intends to sell batches of five-year, 10-year, and 30-year bonds so it can pay US$8.5 billion to the bondholders and use the rest to bolster investment in public works and balance the national budget.
Finance Minister Alfonso Prat Gay assured that the amount due to the “vulture funds” will be deposited in the creditors’ accounts on April 22.
Attractive Argentina Bonds
Due to the growing interest in Argentinean bonds over the past days, Argentina could manage to issue bonds at a 7.5 percent yield, significantly below the initial estimated cost of 8.5 percent.
A favorable ruling by the US Court of Appeals last week paved the way for Argentina to pay the “vulture funds” and return to international bond markets.
The credit rating agency Moody’s then upgraded Argentina from CAA1 to B3, allowing several hedge funds to acquire the country’s sovereign bonds that would otherwise be impeded to engage in risky investments, explained Télam.
EspañolOn Thursday, April 14, Honduras' supreme court ratified a resolution that will allow for reelection, Spokesman of the Tegucigalpa Judiciary Melvin Duarte said. The Supreme Court Constitutional Chamber agreed to endorse a ruling that disables three articles of the constitution prohibiting presidential reelection in the country, Duarte told reporters. He said the supreme court confirmed its April 13, 2015 judgement that two applications for annulment filed by the Liberty and Refoundation Party were "inadmissible" Read More: Honduras: reelection Again Read More: When will the electoral reforms happen in Honduras? On April 24, 2015, the court established presidential reelection in Honduras. But then-judge José Elmer Lizardo changed his mind and announced that he would be withdrawing his signature to instead issue a dissenting opinion. That same chamber replied on April 22 to a request from former President Rafael Callejas and 16 congressman from the National and Democratic Unification Party, to make way for presidential reelection in any form. The judiciary has indicated that the Honduras Parliament must define whether the election will be direct or alternating, for which it requires a qualified majority vote of 86 of 128 deputies in the legislature. For who would vote you for presidential reelection in #Honduras: Flores, Zelaya, Maduro or Hernandez? pic.twitter.com/S8lngSBbl8 - Jaqueline Redondo (@JackyRedondo) April 14, 2016 The Honduras constitution, dating back to 1982, does not allow reelection under any form, but the issue was revived in recent months by former Presidents Manuel Zelaya — ousted in June 2009 — and Rafael Callejas of the National Party,. [adrotate group="8"] Callejas, who was president of Honduras between 1990 and 1994, recently pleaded guilty before a US judge to having committed acts of corruption during his time as head of Honduras Football Association. Zelaya was ousted in June 2009 while promoting a referendum to amend the constitution with the aim of enabling reelection, despite having legal impediments. President Juan Orlando Hernández has argued that only the Honduran people can ask for reelection by modifying the Constitution. He has not specified whether he aspires to lead the country again. Source: La Vanguardia