Geopolitics

Argentina dodges hedge fund’s $84m GDP Bond suit

New York federal judge Loretta A. Preska dismissed Aurelius Capital’s $84 million lawsuit accusing the Argentine government of failing to make agreed-upon securities payouts, but gave the hedge fund a chance to amend its claims. Investors seek to prove that the country distorted growth statistics in 2013 to avoid paying the £3 billion GDP Coupon. It was not done because the country grew below 3 percent. The gross domestic product-linked securities at issue are governed by a document, known as the Global Security, that clearly and unambiguously lays out the inputs for a formula that Argentina used to determine whether it owed those payouts, said the U.S. District Judge.

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Source: Ámbito