“Argentina will take actions through the Security and Exchange Comission (CNV) for an inquiry on fraudulent maneuvers on credit default swaps,” stated Capitanich in his daily press briefing at government house.
He accused vulture funds of “acting on privileged information” against “markets’ transparency”. The Kirchnerite official pointed out that the government is analyzing several legal alternatives against the holdouts, and said “bondholders, trustees and clearing agencies should take actions” too.
Capitanich reiterated the government’s claims of “malpractice” against US Judge Thomas Griesa and his mediator, Daniel Pollack, whose actions he said have had negative “collateral effects” in the financial system.
http://www.buenosairesherald.com/article/166261/government-calls-for-legal-actions-against-vulture-funds
4/8/14
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'The market has spoken and it has determined that there is no default'....
ReplyDeleteThe President of the National Security Commission (CNV) Alejandro Vanoli confirmed in a press conference that the national securities watchdog is calling its European and US counterparts for a “thorough inquiry” on vulture funds for “fraudulent manoeuvres”.
Vanoli accused holdout hedge funds of carrying out “criminal manoeuvres” on a global scale by “using priviledged information” to “manipulate markets”, which is punishable under Argentinean and US laws.
He also denied Argentina’s default. “The market has spoken and it has determined that there is no default,” Vanoli stated. “Argentina is under the same conditions”.
The official reiterated the governments accusations against the holdouts for having a “two-ways” strategy through judicial and extra-judicial mechanisms. He said they worked to receive payment from US Judge Thomas Griesa’s ruling on the one hand, and through the collection of default insurance on the other hand................http://www.buenosairesherald.com/article/166264/the-market-has-spoken-and-it-has-determined-that-there-is-no-default
4/8/14
A group of banks may be about to buy some of the Argentine bonds owned by a group of creditors demanding repayment in full on their $1.5 billion stash of Argentine debt....
ReplyDeleteA lawsuit brought by New York-based hedge fund NML Capital Ltd. prevented Argentina from making a scheduled $539 million debt payment last week to some of its bondholders. That forced the country to default on July 30.
Reports on Monday were that several banks, including J.P. Morgan, Citibank and HSBC, were negotiating to buy at least some of the Argentine debt from the creditor holdouts led by NML Capital.
The bonds in question were defaulted on in 2001, but not all bondholders accepted the 30 cents on the dollar restructuring. NML Capital, for example, won lawsuits in 2005 and 2010 on the restructuring.
U.S. federal judge Thomas Griesa last Thursday said Argentina could not pay some bondholders and not others, forcing the bank to default.
Argentina officials have denied that the country has defaulted on its debt for the second time in 13 years. They say the money was there ready to be distributed, but a federal judge in the U.S. prevented that from happening.
Last week, U.S. credit rating agency Standard & Poor’s downgraded Argentina’s credit rating.
Some information for this report comes from AP, AFP and Reuters.
http://www.voanews.com/content/banks-argentina-debt-negotiations/1971687.html
4/8/14
ISDA to deliberate on Argentina's default...
ReplyDeleteThe International Swaps and Derivatives Association (ISDA) will decide today at noon whether Argentina has defaulted on its debt, which would set in motion a process that could trigger payments worth up to USD1bn on credit default swaps.
On Friday, ISDA’s 15-member determinations committee had decided that a "failure to pay" event had occurred on the contracts on July 30, the day Argentina missed a coupon payment on some of its restructured foreign-law bonds, but today it will deliberate on whether it can be described as a default.
ISDA will discuss two issues to “decide the failure to pay credit event for the Argentine Republic,” according to a press release published on its website. First, whether a “repudiation/moratorium occurred” and then if “a repudiation/moratorium extension condition been satisfied with respect to the Argentine Republic”.
http://www.buenosairesherald.com/article/166350/isda-to-deliberate-on-argentinas-default
5/8/14
ISDA to determine when Argentine CDS have to be paid...
DeleteThe International Swaps and Derivatives Association (ISDA) decided today Argentina’s "failure to pay" event does not mean “moratorium occurred”. According to this decision, Argentina will not have to pay recently expired debt insurance, while overall debt insurance has to be paid in a date to be determined, sources explained Ambito.com.
On Friday, ISDA had decided that a "failure to pay" event had occurred on the contracts on July 30, the day Argentina missed a coupon payment on some of its restructured foreign-law bonds.
With that call, ISDA’s 15-member determinations committee ruled debt insurance has to be paid.
Today, ISDA decided it will meet again in order to set a date to decide when CDS have to be paid.
http://www.buenosairesherald.com/article/166360/isda-to-determine-when-argentine-cds-have-to-be-paid
5/8/14