Wednesday, 16th June 2010
In Business In Japan,
Japanese investors take advantage of swap deal
The majority of Japanese investors in Argentina have taken advantage of an offer to swap any defaulted Argentine debt for new bonds and cash, according to the South American nation's finance secretary.
Hernan Lorezino said that "an overwhelming majority" decided to go for the deal, which was also offered to investors back in 2005. In total, when the two deal offers are added up, 99 per cent of Japanese bondholders of defaulted debt took the cash and new bond option.
Argentina stopped paying into the bonds towards the end of 2001, as it faced a huge domestic economic crisis.
The deadline for taking up the new deal is June 22nd.
Commenting on the debt moves, Reuters said: "Argentina is trying to mop up the remnants of its massive default to defuse lawsuits from 'holdout' creditors who rejected the restructuring, and return to international credit markets after an eight-year absence."
Japan is struggling with its own economic issues, with deflation and the ongoing impact of the worldwide financial crisis still impacting fiscal performance and health.
Written by Kimberley Homer.