The Argentine government has
awarded Barclays Capital the mandate to reach an agreement with
the hold-outs on about $20 billion of defaulted sovereign
The government had received
separate proposals from Deutsche Bank, Citi and Barclays
Capital about restructuring the debt but on 25 September
appointed the UK bank to move forward with its plan for the
bondholders that rejected the 76% haircut on the countrys
$88 billion of defaulted sovereign debt. The last restructuring
of this debt was in 2005.
On 2 September, Cristina
Fernández de Kirchner, the Argentine president, also
announced that the government would use central bank reserves
to repay the $6.7 billion of debt in full.
The terms of the deal with the hold-outs is not yet clear
but the bondholders are making it clear that the offer must