Published June 02, 2016
A Connecticut hedge fund has filed a $1.6 billion claim against Peru in a decades-old dispute over bonds issued by the nation's former dictator.
In the claim filed Thursday, Gramercy Funds Management accuses Peru of indirectly expropriating its investment in bonds in violation of a bilateral free trade agreement.
Peru in the 1980s began defaulting on bonds used to pay for military dictator Juan Velasco's agrarian reform a decade earlier.
Gramercy said it and other investors were short-changed billions because of Peru's failure to abide by a local court ruling and repay the defaulted debt accounting for inflation.
Peru's government hasn't commented. But in February it accused Gramercy of waging a media campaign against Peru and disavowing its repayment offer in a speculative bid to wrest money from the government.
https://www.foxnews.com/world/us-hedge-fund-files-claim-against-peru-over-defaulted-bonds