Argentina makes offer you can’t refuse

The Argentine government, which three years ago set a record with the largest bond default in history, is now telling creditors that unless they accept a new deal they will be stuck with nothing but “worthless paper.”

Argentina owes $103 billion in existing debt and interest, and is offering to give creditors $41.8 million if they give up those claims.  It is telling its 500,000 creditors, many of whom are individuals and pension plans, that it will not pay off the old bonds, but that if they accept the new ones, it will resume paying interest.

Individuals who hold about 30 percent of the bonds have said they intend to sue the government in Argentina to gain what they claim they are owed.