NEW YORK, June 2 (IFR) - Emerging markets asset manager Gramercy announced on Thursday that it had filed a US$1.6bn arbitration claim against Peru as part of a long-running dispute over defaulted 40-year old bonds.
The Connecticut-based fund accuses the sovereign of indirectly expropriating its investment in the land bonds and other violations under the US-Peru Trade Promotion Agreement.
“The government has consistently declined to enter into serious discussions on this matter, leading Gramercy to file the arbitration,” the fund said in a press release.
Holders of the defaulted bonds, including Gramercy, claim a 2013 Peruvian court ruling on the method of payment short-changed them by several billion dollars and subordinates institutional investors in the payment structure. (Reporting by Davide Scigliuzzo; Editing by Paul Kilby and Jack Doran)