After almost fourteen years of waiting, Italian savers in possession of tango bonds will finally be able to see their money again. The turning point was desired by the new Argentine president Mauricio Macri.
According to the latest news, refunds could arrive before the summerfinally closing the issue. "If things go in a positive way - declared the president of the Argentina Task Force, Nicola Stock - our representatives will be able to go on vacation with the money".
We remember that, based on the preliminary agreement reached two days ago, the 50 investors who have not accepted the previous debt restructuring agreements, instead adhering to the legal action brought against the Argentine government, will be able to obtain a repayment of 150% of the nominal capital invested for an equivalent value of 1,35 billion, considering that over the years the value of the initial investment has been eroded by inflation. The annual interest has been set at 2,74% nominal, while the real one will be 0,82%.
The agreement refers to a story that began in the mid-90s, when no one would have ever imagined Argentina's default. At the time, nine Italian groups negotiated a 14 billion euro bond with Buenos Aires with a very high yield (almost 10%). Shortly afterwards, when the Argentine economic crisis became clear to everyone, some banks decided to offload the risk that had now become very high on investors, taking advantage of the skyrocketing yields. After the default of the South American country, Tango-bonds have totally lost their value with huge losses for all the investors who had decided to buy them.
Today, after years of judicial vicissitudes, 50 Italians out of a total of 450 (many have accepted previous restructuring agreements) will finally be able to obtain reimbursements thanks to a preliminary bilateral agreement between the Argentine government and the TFA (the banks' task force) for the cash payment of 150% of the share capital corresponding to 900 million euros.
In parallel, the aforementioned Tfa intends to start a discussion with Economy Minister Pier Carlo Padoan in relation to the tax treatment of the compensations that the savers in possession of the tango-bonds will receive "I asked for a meeting with Padoan - said Stock - who I would dare to define as a good friend and with whom I had very frequent contacts when he was at the IMF, because I want to define the tax aspects with him. I wouldn't want these people, often elderly, to have to receive a tax slap after 14 years of waiting".
