(Bloomberg) – Argentine GDP coupons rose as much as 107% this Thursday after a federal court in the United States ruled that the country must show how it calculated the statistics at the center of a legal battle between the investment fund Aurelius Capital Management LP and the South American nation.
Its coupons tied to gross domestic product rose to their highest level since March 2020, while coupons denominated in dollars due in 2035 rose as high as 107% and those denominated in euros rose 42%.
Argentina must disclose the methodology it used to measure GDP and economic activity in 2013, according to a ruling by a federal court in New York published this Wednesday. The court will also require Aurelius to provide documents related to his purchase of these assets.
The New York-based hedge fund claims the Administration of then-President Cristina Fernández de Kirchner misrepresented GDP figures that year to avoid paying asset holders billions of dollars owed to them. The coupons, which trigger payments when specific growth thresholds are reached, were offered to creditors in a restructuring after Argentina defaulted on $ 95 billion of debt in 2001.
The hedge fund alleges that the manipulated statistics of Kirchner, who is now vice president, prevented the firm from collecting a payment of US $ 61 million. Argentina has said in court documents that it made all the required payments related to the guarantees, totaling nearly $ 10 billion, and asked the judge to dismiss the requests. The court denied that request earlier this year.
Argentine Warrants More Than Double After Ruling Favors Aurelius