Argentina's Congress approves $171 million payment to vulture funds

Argentina’s lower house voted 139‑97 to turn into law a settlement with two holdout creditors that have pursued lawsuits over the country’s 2001 sovereign‑defaulted bonds. The agreement authorises a payment of US $67 million to Bainbridge Ltd. and US $104 million to Attestor Value Master Fund LP,  totaling US $171 million. The deal, negotiated by President Javier Milei’s administration, includes a roughly 30 % haircut on the claims and a stand‑still clause that bars the creditors from initiating new actions while the payment is processed.

By settling the claims, the government aims to lift U.S. court‑ordered execution measures that have affected Argentine sovereign assets such as shares of Banco Nación and Aerolíneas Argentinas. Lawmakers argued the payment will close long‑running litigation, restore confidence with international investors and prevent further asset seizures, while opposition members warned it could increase public debt and set a precedent for future borrowing.

The legislation was approved before the June 30 deadline stipulated in the U.S. settlement framework, enabling the executive to proceed with the transfer under an international delivery‑versus‑payment mechanism.