The French company obtained a favorable ruling from ICSID in February, ordering Argentina to pay $ 312 million. The agreement represents a 32.7% reduction in the amount of the sentence.
The Argentine government agreed today with Petroleum Total SA to pay US $ 210 million in Bonar 2024 bonds, following a decision by the World Bank’s international arbitration tribunal in favor of the French company.
This was reported today by the Ministry of Finance, based on Resolution 112-E / 2017 published in the Official Gazette.
In February, the company received a favorable ruling from the International Center for Settlement of Investment Disputes (ICSID) ordering Argentina to pay U.S. $ 312 million for more than a decade of lawsuits.
“This agreement puts an end to TOTAL’s claim and helps to re-establish direct investments particularly from companies from France in the energy sector,” Finance said in a statement this afternoon.
Finally, the agreement represents a 32.7% reduction in the amount of the sentence.
Total’s claim arises from regulatory changes imposed in the country during the financial crisis of 2001-2002, which resulted in a sharp devaluation of the currency and a massive cessation of sovereign debt payments.
According to the resolution published today, the government extended the issuance of public debt instruments denominated ‘Argentine Nation Bonds in US Dollars 2024’, with an annual rate of 8.75% for up to US $ 210 million.