The beneficiaries will execute a guarantee for EUR 313 million that Argentina deposited in March with a Letter of Credit issued by Santander. The Government of Javier Milei must decide whether to pay the ruling of EUR 1,330 million plus interest.
Argentina loses appeal in the UK Supreme Court over the PBI Coupon
Ignacio Petunchi
Argentina lost the appeal in Supreme Court of the United Kingdom in the dispute over the GDP Coupon. The Government of Javier Milei must decide if it will pay the ruling. The decision leaves the country without legal instances to try to reverse the ruling April 2023 and enables the plaintiffs to execute the guarantee.
This is insurance for EUR 313 million that Argentina deposited in March with a Letter of Credit issued by Santander. Now Javier Milei’s government must decide whether to pay the sentence for EUR 1,330 million plus interest.
PBI Coupon Cause: what it was about
In 2014, the government of Cristina Fernández de Kirchner decided to change the way GDP growth was calculated and, after that modification, The coupons did not pay interest for the year 2013.
Four investment funds, Palladian Partners LP, which owned around 48% of the securities issued between 2005 and 2010, sued Argentina in 2019.
In April 2023, hedge funds gained a judgment in the United Kingdom on compensation and also triumphed in the Court of Appeal.
In May and June 2023, The country had already lost the appeal it had filed before a London court to annul the sentence that forces the country to pay a fine. linked to PBI coupons.
Source: Ambito
