UPDATE 1-Talks between Argentina holdouts and banks stall -sources
(Adds quotes, detail)
By Joan Magee
NEW YORK, Aug 12 (IFR) - Argentina's holdout creditors and international banks are struggling to strike a deal on the sovereign's debt, sources close to the situation said on Tuesday.
Citi, Deutsche Bank, HSBC and JP Morgan last week offered the holdouts 40 cents on the dollar for the roughly US$1.66bn bonds, including interest, they own, and raised that offer to 50 cents on Monday, the sources said.
But that is way below the 80 cents that was first discussed by banks last week.
"These are not fully-baked proposals," said a source from one of the holdout firms - hedge funds led by Aurelius Capital and NML Capital.
"Right now, any and all deal talks are completely dead, because the bitter public rhetoric of the Argentine government has killed any such interest on the part of third parties," the source added, referring to media coverage of Argentina's default on July 30, its second in 13 years.
"Nobody trusts that Argentina has any interest in a resolution in any reasonable time frame," the source said.
Argentine bonds dipped 25 cents on average from earlier this morning, traders in New York said. Continuación...