Argentina agrees to pay 50,000 Italian bond holders

(ANSA) - Rome, February 2 - The Argentina Task Force (TFA) representing Italian investors and the new Argentinian executive of center-right President Mauricio Macri reached a preliminary accord Tuesday for the compensation of over 50,000 Italians holders of defaulted Argentine bonds. Argentina has agreed to pay back 150% of the principal - or $1.35 billion in cash - subject to approval by parliament. The South American nation defaulted in 2001, leaving 450,000 Italian small investors in the lurch. Many accepted substitute bonds in two restructurings, in 2005 and 2010.
    "We're very glad to have reached a preliminary accord, which represents the first step in the normalization of relations between Argentina and international financial markets," said Argentine Finance Secretary Luis A. Caputo.