Argentina's Congress will reverse two laws that blocks the settlement of a case that has clumped the country's economy by keeping it away from the global bond market.
On Monday, a lawmaker stated that the law that keeps Argentina out of the global bond market is hurting its economy, which is known to be the third largest in Latin America. A settlement in the works would clear financing options to the country's president.
According to report, the president is trying to fix the country's fiscal mess without putting on spending cuts that have impeached former leaders of the nation. On November, President Maurico Macri was elected on an open-markets platform afer eight years of protectionism under Cristina Fernandez, Reuters reports.
The judge working on the case wants the Congress to reverse the laws that allow bond payments to be done in Buenos Aires instead of New York. Additionally, the judge wants to ban the government from offering better terms than those included in Argentina's 5-year debt formations.
"I think we are going to have the numbers we need (to repeal the laws)," said Nicolas Massot to a local Argentinian radio station, as reported by CNBC. Massot is the head of Macri's PRO party and has expressed the opinions of other administrative heads.
In the past months, Argentina has been disapproved by international capital markets since it declared over billion dollars in debt back in 2002. 93% of creditors accepted a small sum of 30 cents on the dollar in two bond overhauls.
Aside from asking for full repayment, the creditors are trying to convince the judge to prevent the nation from servicing its restructured bonds until they are paid. Thomas Greisa, U.S. District Judge, said that it would be better for the public to lift the injunction of bond if Argentina reverses the laws and gives its creditors the chance to settle by February 29.
