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15-year battle with creditors nears end

CCTV.com

04-08-2016 14:38 BJT

Argentina is not out of the woods when it comes to its financial crisis, but a debt deal reached this week has some believing its 15-year battle with creditors might end as the country tries to turn things around. Next week will be pivotal.

In 2001, Argentina defaulted on its 100 billion dollar loan. The country soon found itself in a political, economic and social crisis. Millions fell into poverty as unemployment soared.

Since that crisis, Argentina has been wrestling with finding a solution to pay off creditors. One group refused deals in 2005 and 2010, and they took the country to court demanding full repayment on their bonds.

Under former President Cristina Fernandez de Kirchner, not paying these so-called holdouts was a declaration of economic sovereignty. The country headed a debt restructuring agreement at the United Nations which only six countries voted against.

But Argentina was excluded from international credit markets, hitting the economy hard. After winning the presidential election in December, Mauricio Macri and his economic team worked fast to strike a deal with the creditors in New York.  

The Argentine government believes passing the law to pay the holdouts is a major victory. 

The economic crisis affected many lives. How the country repays its debt has provoked mixed feelings.

This week, Finance Minister Alfonso Prat-Gay suggested an end to this saga is not so clear cut, despite the agreement. Argentina must pay up by April 14th, but it's waiting for a ruling on the 13th.

Argentina's government hopes to resolve this long-standing legal battle as soon as possible, but there may yet be more negotiating to do. 

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