Argentine Senate approves law to change place of debt payment
The aim of the rule is to circumvent the blockade imposed by American justice on payments made by Argentina to 92.4% of its creditors, who agreed to swap their debt in 2005 and 2010.
In June, New York judge Thomas Griesa froze $ 539 million that Argentina had turned over to the Bank of New York-Mellon (BoNY), its paying agent, to meet deadlines on its discount bonds.
In response, the Argentine government announced a bill to change the place of payment of these obligations and to replace the paying agent with a local agent.
At the end of August, the South American country also revoked BoNY’s authorization to operate in the country.