Members of Argentina's banking association, known as Adeba, are working on a last-minute plan to help the country avoid default, the Wall Street Journal reported today. News of the plan came as Argentina's economy minister said yesterday that the country would continue negotiations today with holdout investors after failing to reach a deal during a full day of talks. Argentina needs to reach an agreement with the investors by Wednesday to prevent a default, which would be its second in 13 years. Meanwhile, Argentina's representatives and the holdout creditors met face to face for the first time yesterday, the court-appointed mediator, Daniel Pollack, said in a statement after the talks had concluded. Pollack said that Argentina and the holdouts hadn't yet determined whether and when to meet on Wednesday. The bankers association's plan, which hasn't been completely hashed out among the banks, would entail buying the legal claim and paying off the holdout creditors who are suing Argentina in U.S. courts for full payment on bonds the country defaulted on in 2001. In exchange, the banks would ask the holdouts to ask U.S. District Judge Thomas Griesa, whose ruling has barred Argentina from paying its restructured bondholders unless it pays off the holdouts, to suspend his ruling.
