BUENOS AIRES: Argentina has claimed a breakthrough in efforts to get US hedge funds off its back by paying $6.5 billion of debt, but faces tricky maneuvers to settle the dispute for good.
The leaders of Latin America's third-biggest economy said Friday they had offered the sum to settle its long debt battle with "holdout" creditors suing it in a US court.
Two of six major holdout creditors have accepted the deal, which would impose a 25-percent loss on their investment. But four have not done so yet.
"The proposal is undoubtedly an historic moment for Argentina," wrote Edward Glossop, an analyst at financial research group Capital Economics.
"It is the first formal deal that the government has presented to the holdouts, and is a significant step in the government's bid to return to global capital markets."
That is the aim of Argentina's new President Mauricio Macri, who took over last month from leftist leader Cristina Kirchner. She had refused to pay the hedge funds, branding them "vultures."
Creditors were demanding full repayment of about $9 billion on bonds the country defaulted on.
"This litigation has gone on for nearly 15 years since the original Argentine default of 2001, and the proposal by Argentina is an historic breakthrough," said mediator Daniel Pollack.
Glossop warned however: "There are still a number of hurdles to overcome in order for the government to return to global capital markets."
The holdouts are a minority class of creditors that refused to go along with the restructuring of the country's debt after it defaulted on about $100 billion.
They were led by two funds: NML Capital, a unit of Elliott Management, and Aurelius Capital Management.
The funds which accepted the offer were Montreux Partners and Dart Management, according to the government.
Glossop reckoned some of the holdouts may yet press for better terms. NML Capital was among those yet to respond to Macri's offer.
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