Here are the tango bonds again, how not to return the money (obtained twice) to the bank

A few days ago came the turning point. The Court of Appeal of Naples overturned the outcome of the first instance with a clear motivation: the reimbursement made by the Argentine State has a completely different cause and subjects from those considered in the case against the bank. The payment made by the bank by way of compensation, therefore, did not cease to exist, either in whole or in part, due to the supervening collection of the sums by the investor under the agreement with Tfa.

In essence, the Court excludes that the subsequent reimbursement has any effect on the final judgment. Nor can an undue payment be configured, because MPS paid by virtue of the judgment itself. Nor, even less, can there be unjust enrichment because this action is residual and cannot be invoked if other remedies exist. The bank, argues the Court, could possibly have acted autonomously in terms of its entitlement to repayment of the bonds, but it cannot overturn a judgement.

"The decision," observes lawyer Ursini, defending the investor, "not only closes a long and wearisome litigation, but also introduces a potentially relevant precedent for similar cases, especially in the context of large sovereign debt restructurings. The Court reiterates a principle that is perhaps obvious, but not taken for granted: a right established by a final judgment cannot be circumvented merely because the beneficiary's asset situation has subsequently changed. The protection of res judicata," the lawyer concludes, "remains a bulwark, even in the presence of events that have occurred in favour of the former injured party.

Tango bond issue. Between 1998 and 2001, international banks bought the debt of the Argentine Republic (which had also accumulated due to the Falklands War in the 1980s) and resold it to Italian investors through bonds (Tango bonds).

Default of 2001. In December 24 years ago, Argentina declared a public debt default of $132 billion. The bonds issued by the state were not repaid to foreign investors.

Debt restructuring. In 2005, the Argentine government proposed a debt restructuring with a 70% cut in the value of the bonds and a 30-year repayment plan. 76% of savers accepted the offer.

Compensation. Investors who rejected the Argentine government's offer obtained better conditions thanks to the Task Force Argentina (Tfa). Other savers obtained full compensation for the sums invested thanks to the banks' pre-contractual default.

State of facts. In 2016, Italian investors who had rejected the Argentine government's offer got 150% of the nominal value of the Tango bonds they had invested in 15 years earlier.