Freeze Warning expires at 8:00 AM on 9/19, issued at 4:13 AM Adirondack, NY | Athol, NY | Bakers Mills, NY | Blue Mountain Lake, NY

Argentina seeks to end default through bond change

(Mark Kolbe, Getty Images)
(Mark Kolbe, Getty Images)
Set Text Size SmallSet Text Size MediumSet Text Size LargeSet Text Size X-Large
Share
Updated: 8/20 9:17 am

BUENOS AIRES, Argentina (AP) — Argentina's government plans to change the way it pays holders of the country's debt as a way to end the default triggered by a legal battle with U.S. investors.

President Cristina Fernandez says she will send a bill to Congress that would set up a system to pay bondholders in Argentina instead of channeling them through the Bank of New York.

The change is intended as a way around a U.S. court order that blocked Argentina from making $539 million in interest payments on July 30, triggering the country's second default in 13 years. It would affect creditors who accepted lower-value bonds following the country's 2001 default and could further complicate the battle with holdout creditors.

Fernandez proposed the change late Tuesday and it's expected to pass in Congress.

 

©2014 Associated Press. All rights reserved. This material may not be published, broadcast, rewritten, or redistributed.

Share
0 Comment(s)
Comments: Show | Hide

Here are the most recent story comments.View All

The views expressed here do not necessarily represent those of FOX23 News.

No comments yet!
Inergize Digital This site is hosted and managed by Inergize Digital.
Mobile advertising for this site is available on Local Ad Buy.