"We have an deal!" Special Master Daniel Pollack announced that a deal was reached between Argentina and Elliott Management. Photo via La Nación

This afternoon new Finance Secretary, Luis Caputo met with Daniel Pollack, the Special Master (mediator) appointed by the U.S Court to oversee the negotiations with holdout funds, known (not so) affectionately as “vulture funds.”

Caputo made no comments as he entered Pollack’s office building and avoided the press when he left. Fear not – because Pollack issued the following statement:

“I met this morning with Luis Caputo, Secretary of Finance, and Mario Quintana, Vice Chief of the Cabinet of the Republic of Argentina, for approximately one hour in my offices in New York City.  The meeting was constructive, covering a range of issues, and it was agreed that they will return to New York City in the second week of January to commence substantive negotiations with the Bondholders. “

Constructive? Range of issues? Wow, it’s like we were actually there!

We’ll just have to wait for the second week of January for things to really get interesting on this front. Caputo and Pollack have already met earlier this month and settling the vulture funds dispute is a reported priority for President Mauricio Macri’s new administration.

After Argentina defaulted on its international debt in 2001, the sovereign debt went through restructuring in 2005 and 2010. Holdout bondholders did not accept the new terms, selling them to the so-called “vulture funds”, who have made consistent and repeated appeals for the debt to be repaid in full: New York Justice Thomas Griesa ruled in their favor and Argentina has so far avoided his rulings (to the point of being held in contempt).

Click here for our own Bianca Fernet’s rundown on the “vulture” funds and why we hate them so much.