ROME, Feb 4 (Reuters) - Arbitration at the World Bank between Argentina and Italian creditors will be put on hold for four months to give the Argentine parliament time to ratify a deal on defaulted debt, the head of a bondholder association said on Friday.
Nicola Stock, the president of Task Force Argentina, said if Argentina’s Congress did not agree to the accord, which offers some $1.35 billion in cash to the Italian creditors, then the arbitration at the International Centre for Settlement of Investment Disputes (ICSID) would resume.
“As part of the deal, we agreed to suspend the ICSID arbitrage for four months to let Argentina ratify the accord,” Stock told a news conference.
“I think that one of the reasons the Argentine government decided to reach a deal with us was to avoid a ruling from ICSID, which was due shortly,” he added.
The deal, announced on Tuesday, represents a payment of 150 percent on the $900 million principal value of the debt which Argentina defaulted on in 2002. (Reporting by Stefano Bernabei; Editing by Crispian Balmer and Steve Scherer)