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Argentina Promulgates Law Approving $171 Million Settlements to End Holdout Suits

Officials say the payments will remove legal overhangs to lower country risk, helping Argentina re-enter international capital markets.

Overview

  • The executive promulgated Law 27.818 by Decree 564/2026, formally approving settlement agreements with Bainbridge and an Attestor-led group.
  • The agreements require a combined cash payment of USD 171 million, split as USD 67 million to Bainbridge and USD 104 million to the Attestor group, with the latter also recognizing a secured 'Monto Asegurado' tied to Brady collateral.
  • Creditors must surrender the disputed bonds for cancellation once Argentina completes the agreed payments, ending the long-running litigations in New York courts.
  • The law specifies that the payouts will be charged to Jurisdicción 90, the public debt service budget, and the Treasury must determine the timing of the disbursements.
  • The government says the settlements will stop discovery demands and reduce the risk of foreign asset seizures, a step intended to lower Argentina's country risk even as other external claims totaling billions of dollars remain unresolved.