Argentina will restart talks in January with holdout creditors commonly referred to as the vulture funds, a negotiator said Monday.
U.S. negotiator Daniel Pollack said the new Argentine government locked in plans to relaunch talks within a matter of weeks, after he met with President Mauricio Macri.
“The meeting was constructive, covering a range of issues, and it was agreed that they will return to New York City in the second week of January to commence substantive negotiations with the Bondholders,” Pollack said, according to AFP.
Macri has vowed to reach a negotiated deal with the vultures, who include former creditors who refused to participate in Argentina's 2001 debt restructuring. While most of the country’s creditors at the time agreed to accept the restructuring, a small group has pursued legal action internationally against the Argentine government.
In July 2014, U.S. Federal Judge Thomas Griesa controversially blocked a deposit of $539 million from the Argentine government, instead demanding holdout claims be paid in full. Shortly afterword, Argentina declared a “partial default” despite showing the will and capacity to pay 90 percent of its creditors on a month-by-month basis.
Since then, Griesa has increased pressure on Argentina by directing international financial firms to not process certain payments and blocking a plan to rollover some of Argentina's debt.
IN DEPTH: Argentina's Vulture Funds
The decision by the United States has been widely criticized by regional leaders and the international community. Since the initial ruling, several regional integration blocs have issued statements of support for the Argentine government including the ECLAC, the Southern Common Market (Mercosur), the Bolivarian Alliance for the Peoples of Our America (ALBA), the Bank of the South and Unasur.
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