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Hedge fund challenges Peru on land bonds

Tactics of Gramercy Funds Management are similar to those used by funds in Argentina, Greece and Iceland

A Connecticut hedge fund is waging a campaign to make Peru pay off land bonds it defaulted on two decades ago, echoing financial firms’ tactics in recent years in Argentina, Greece and Iceland.

About a decade ago, Gramercy Funds Management began buying agrarian bonds held mostly by Peruvians who received them when their family farms were expropriated by the government in the 1960s.

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