Argentina's debts still cause political turmoil

Argentina defaulted on almost $100bn (�56bn) of debt more than two years ago and investors who bought the bonds have not seen their money again since.

This meeting could be one of their most important in what has become the world's biggest sovereign debt crisis.

Investors already face the prospect of losing 75% of their money.

Battle of wits

The visit will include members of the Global Committee of Argentina Bondholders, which represents institutional and retail investors. They have around $55bn-worth of defaulted bonds and are already angry about an offer made by the Argentine Government last September to write off 75% of their nominal value.

Mr Kirchner says the first offer stands

Argentine President Nestor Kirchner has indicated that he will not change that offer - something, he says, would jeopardise economic growth.

The bondholders think it is more likely that they would lose around 90% of their investment.

The International Monetary Fund (IMF) has its own concerns over Argentina's relations with its private foreign creditors. One condition for a loan granted in September 2003 for $3.15bn, which was due by 9 March, was that Argentina should negotiate in "good faith" with the creditors.

The creditors say that the opening offer of 75% did not represent good faith.

After meeting the 9 March deadline Argentina got fresh funding from the IMF of $3.1bn. It came part of a $13.3bn rescue package agreed with the US-based lender last year.

It had become a game of cat and mouse as Argentina's president had threatened to default on the arrears unless the IMF cleared the way for a fresh disbursement from the $13.3bn package.

Private investors

The bondholders are mainly specialist investment funds, but there are also hundreds of thousands of private individuals involved.

The World Bank stepped in on Thursday with a $2bn loan for 20 months, which it described as a first step in its long-tem support for Argentina.

The size of the loan reflected caution: Argentina had wanted a further $3bn and for it to be repaid over a longer period.