The Court of Appeals of the Second Circuit fails in favor of Argentina in case of PBI. This failure is related to INDEC data and was presented in 2019. There are other cases about coupons even ongoing.
The justice of the USA failed in favor of the Argentina In the dispute for the payment of PBI coupons. The Court of Appeals of the Second Circuit ratified the judge’s first instance decision Loretta Preska Linked to the country’s growth data during the second government of Cristina Fernández de Kirchner.
This same Magistrate It is the one that rejected an approach of Argentina’s lawyers to suspend the execution of the sentence in favor of Vulture funds and ratified that the National State must deliver the 51% of YPF actions to the winners of the trial for the expropriation of the 2012 flag oil company.
In parallel to the cause by the PBI coupon In the US there was another one in Londonin which Argentina was already sentenced in October 2024 to pay about 1,330 million euros plus interest, after the country lost the appeal presented before the Supreme Court of Britain. In February of this year, Bonistas executed a guarantee that Argentina had deposited in March 2024 for about 313 million euros.
He PBI coupon From Argentina it emerged in 2005, as part of the debt exchange after the default of 2001. It is an instrument tied to the growth of the gross internal product and pay additional performance only if the economy grows above a threshold determined. It was issued together with the new restructuring bonds (Boden, Discount, PAR) and placed both in local and international jurisdiction, including New York (USA).
In the US, he began to quote that same year (2005) as a financial derivative linked to the economic performance of Argentina. Its price fluctuated strongly with the country’s growth expectations. The judicial case in the US for the PBI coupon was generated because A group of bondists sued the Argentine Republic claiming that the country manipulated GDP data in 2013 to avoid paying the coupon linked to economic growth.
Specifically, Argentina decided not to pay that year arguing that growth did not exceed the threshold established in the contract. But creditors argue that The Government changed PBI calculation base (from 1993 to 2004) to simulate that the necessary growth had not been reachedwhen with the original base the payment would have been activated.
Source: Ambito
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