Argentina’s Senate Votes to Repay Creditors

Argentina’s Senate this week voted to repay its creditors currently holding its defaulted debt. This move now paves the way for the country’s return to international capital markets. According to global ratings agency, Moody’s, this could be “possibly in coming weeks.”

Moody’s lead analyst on Argentina, Gabriel Torres, commented on Argentina’s vote:

“The [Argentina’s] Senate’s approval to make payment to creditors is an important credit positive step. However, payment to the litigating holdouts that have reached an agreement with Argentina still requires the lifting of an injunction by US courts. This is likely to happen in the next few weeks, and once that is resolved it will allow Argentina to put the 2014 default behind it and return to the international capital markets. “

Moody’s Investor Service (MIS) currently holds the country’s rating at Caa1 (with a positive outlook).

 

 

Photo Credit: Argentine flag vector image courtesy of iStockphoto.com.

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