Argentina has signed an agreement with US hedge funds to settle a protracted dispute over its failure to repay billions of dollars worth of bonds.
It will pay the funds who sued the nation about $4.6bn to settle claims.
They had bought the bonds at heavily discounted prices after the country’s economy collapsed in 2001.
The previous government of President Cristina Fernandez de Kirchner, refused to negotiate with the investors, labelling them “vulture funds”.
The agreement is a victory for Mauricio Macri, who was sworn in as Argentina’s president in December.
He reversed the non-payment stance taken by his predecessor.
The creditors were led by hedge funds NML Capital and Aurelius Capital Management.
Daniel Pollack, the court-appointed mediator, said: “It gives me greatest pleasure to announce that the 15-year pitched battle between the Republic of Argentina and Elliott Management, led by Paul Singer, is now well on its way to being resolved.”
The long-standing dispute has restricted the country’s access to international credit markets.
After the announcement was made the Buenos Aires Stock Exchange’s benchmark Merval Index was up by 3%.