[JURIST] Argentinian lawmakers on Thursday voted [press release, in Spanish] to approve a USD $4.65 billion deal with creditors in the US, ending a 14-year debt default. Although the deal was agreed to “in principle” in February [Reuters report], Congress’ approval was necessary, and, after 13 hours of debate, it was approved. The deal will greatly improve the financial reputation of Argentina allowing the nation to receive financing and engage in the markets more freely.
Litigation related to Argentina’s 2001 debt default has continued for years. Earlier this month a judge for the US District Court for the Southern District of New York lifted injunctions [order, PDF] blocking Argentina from paying its restructured debt. In February Argentina and US bondholders settled [JURIST report] a class action lawsuit over the defaulted debt. Last September the US Court of Appeals for the Second Circuit ruled that a lower court judge should not have expanded a class action suit [JURIST report] of bondholders suing Argentina. Last April the Second Circuit dismissed [JURIST report] the Argentine government’s appeal of a contempt charge in an ongoing dispute over Argentina’s bond default. In September 2014 Argentina signed into law [JURIST report] a bill to continue making payments on foreign-held bonds outside of US jurisdiction, circumventing the US court ruling [JURIST report] that prohibits Argentina from paying its bondholders until the dispute is resolved. In August 2014 Argentina initiated legal proceedings [JURIST report] against the US in the International Court of Justice over US interference in the restructuring of Argentina’s foreign debt.