Argentina agrees to restructure debt holdouts

Business Materials 30 September 2008 07:07 (UTC +04:00)

The president's Cabinet secretary says Argentina has signed an agreement with three banks to restructure debts to creditors who rejected a 2005 settlement, AP reported.

Sergio Massa says Barclays PLC, Citigroup Inc. and Deustche Bank plan to negotiate with some 500,000 institutional lenders and individuals suing Argentina in U.S. and European courts over the historic 2001 default.

Creditors are demanding reimbursement on US$20 billion plus interest, after the country's 2001 default on about US$95 billion in bonds.

The agreement is a policy reversal for President Cristina Fernandez and her husband and predecessor Nestor Kirchner in an effort to access international credit markets.

Massa made the announcement Monday evening.