“Argentina has proved a massive, almost unanimous and completely successful debt restructuring,” Kicillof assured as he accused US Court District Judge Thomas Griesa of “clearly favouring” so called vulture funds suing the South American country over its defaulted bonds more than a decade ago.
Saying the ruling by Judge Griesa is “impossible” to comply with as it involves the payment of 1.6 billion dollars to bondholders (including interests) that refused to enter the country’s 2005 and 2010 restructurings, the minister renewed the government’s position that vulture funds never actually intended to accept Argentina's debt swaps.
“These gentlemen bought bonds for 50 million dollars and Griesa says we must pay them now. Griesa says you can not pay the 92 percent of creditors (that did accept the swaps) if you don’t pay those who bought bonds for 50 million dollars that turned into 800 million dollars. A snowball,” Kicillof affirmed accusing the New York magistrate of holding bondholders “hostages” to push for a solution benefiting hedge funds.
- Judge Griesa “clearly benefits” 1 percent of creditors “that never entered and never wanted to enter” the debt restructurings carried out by the Kirchnerite administration back in 2005 and 2010.
“Argentina will preserve its restructuring because the most speculative 1 percent not of Argentina’s but of the international financial sector will not attack Argentina through lobby (…) jeopardizing what we have done which is to return the 2001 disaster to normal,” Axel Kicillof said alluding to the social, economic and political collapse and historic default the nation plunged into 13 years ago.
“If the Bank of New York does not change its position, if Griesa does not allow the payment (…), we have ahead the September 30 due date and Argentina will pay,” Kicillof announced ratifying Argentina’s has not defaulted on its sovereign debt and that the Nación Fideicomisos S.A. represents a “safe” channel to secure payment to bondholders, removing the Bank of New York Mellon as payment agent.
Explaining that the government was not changing the payment jurisdiction – Griesa has already threatened a contempt-of-court order in such scenario - but seeking a “change of payment location” for bondholders to “collect” their money. “A government can not be banned from servicing its debt,” he insisted ratifying Argentina’s “unbreakable will” to pay.
Kicillof also expained creditors that refused the 2005 and 2010 swaps – only a 7.6 percent of bondholders – will be now able to access the restructuring.
- “They can come and exchange their bonds (ruled by Argentina’s legislation) and they will get a 300-percent-winning. Paul Singer wants 1,600 percent of profit because he is a vulture. But he can come and get 300 percent (of profit),” the economy minister assured now aiming at head of Elliott Management and US billionaire Paul Singer, one of the holdout creditors in the case.
buenosairesherald.com
20/8/14
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Related:
- Argentina instó a Estados Unidos a que "asuma la responsabilidad de los actos ilegales de Griesa"...
US refuses to recognize UN court jurisdiction on Argentina’s debt
Argentina calls US to "take responsibility" for Griesa's actions
Stiglitz aseguró que los tribunales de EEUU “fueron una farsa”....
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Aurelius: 'Argentine leaders have chosen to be outlaws'...
ReplyDeleteHedge fund Aurelius Capital Management has slammed Argentina's proposal to change the jurisdiction of restructured debt to Buenos Aires, in a move that the holdout investor called the nation's "latest plan to evade and violate US court orders".
"Argentina's leaders have literally chosen to be outlaws. They have chronically flouted US court orders, lied to our courts, and proclaimed utter disdain for our courts," fired the vulture fund, in a statement released today.
Aurelius, alongside Paul Singer's NML Capital, is one of the plaintiffs in the litigation held against Argentina presided over by judge Thomas Griesa in New York. The justice has repeatedly ruled that until holdout investors are paid, those 93 percent of bondholders who entered restructuring in 2005 and 2010 cannot receive funds.
The hedge fund continued by claiming that it was the Argentine people that were suffering most from the current impasse.
"Mistakes by the Republic's current leaders have already cost the Argentine people far more than what is owed to all so-called holdouts. These officials are now doubling down on an illicit and failed approach, as recommended last May by their US counsel," the missive asserts.
"Contrary to government rhetoric, the only conspiracy that is harming Argentina's economy is composed of the nation's own leaders."
http://www.buenosairesherald.com/article/167593/aurelius-argentine-leaders-have-chosen-to-be-outlaws
21/8/14