2002 - Non-Payment / Argentina
Sovereign paid a claim to an Insured who had made a loan to a sub-sovereign entity in Argentina. The devaluation of the peso resulted in the borrower being unable to make full payments on the loan as they came due. The claim related to a series of missed payments. Once Sovereign paid the claim, it took a beneficial interest in the loan and participated in the restructuring of the debt. Post-restructuring, the loan has performed on schedule.