The ruling coalition scored two key legislative victories on Wednesday as the Chamber of Deputies approved both a new investment incentives regime for emerging industries — dubbed “Super RIGI” — and a settlement with hedge funds holding bonds from Argentina’s 2001 default.
The new Incentive Regime for Large Investments in New Industries (RIGI for New Industries) offers tax stability and foreign-exchange benefits for 30 years to projects worth at least US$1 billion in sectors considered new or still in their early stages of development in Argentina.
While the agreement to pay the so-called “holdouts” means the country can put an end to lengthy litigation over bonds issued before the country defaulted on its debt in December 2001.
“Vulture funds”
On Wednesday afternoon, the Lower House sanctioned a US$171 million payout to hedge funds Bainbridge Ltd. and Attestor Value Master Fund, which the Senate had approved earlier in June.
