Alfonso Prat-Gay, a former governor of Argentina’s central bank, was granted permission by a U.S. appeals court yesterday to file a brief supporting his country’s effort to overturn a ruling that it must pay $1.33 billion to holders of defaulted bonds.
Prat-Gay, now a congressman representing Buenos Aires, said bondholders who haven’t sold the new bonds they received in a 2005 bond exchange have made a 58 percent profit, while Argentina’s per capita real GDP has risen 46 percent since 2005.
“This means that the average Argentine citizen is worse off than the average participating bondholder,” Prat-Gay said in a filing in the U.S. Court of Appeals in New York. “And the GDP warrant clock continues to click relatively more in the latter’s favor. How fair is that?”
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