Argentina's senate approves debt repayment deal

Argentina’s senate has approved President Mauricio Macri’s repayment deal aimed at holdout creditors.

The deal is likely to end the country's 15-year legal tussle with creditors in New York that has restricted Argentine access to international credit markets.

The holdout creditors, who refused to agree to a restructuring of Argentina's debt after it defaulted on nearly $100bn (£71bn) in 2001, can now be repaid.

Central to the deal is a cash payment of $4.7bn; nearly 75% of what Argentina owes to funds that sued the country in a US court over non-payment of debt.

President Macri, elected last year on a promise to improve Argentina’s economic fortune, had warned senators that a "no" vote would condemn the country to remain a "financial pariah" shunned by global credit markets.

Subsequently, the repayment deal was approved by 54 votes to 16 in the Senate after a 12-hour debate late on Wednesday.

Earlier this month, Argentina's lower house of Congress approved the debt deal after 20 hours of debate, with a majority of 165 to 86 lawmakers voting in favour of repealing bills which stood in the way of agreement with creditors.

Macri’s predecessor Cristina Fernandez de Kirchner refused to negotiate with the holdout creditors whom she called "vulture funds". As consequence, Argentina could not meaningfully tap the international debt market, and even when it did so, loans came at double the rates major Latin American economies were availing.

The Macri administration now has until 14 April to pay the holdout creditors.