Argentina still haunted by the holdouts from the 2001 default
Argentina’s attempts to return to global credit markets nine years after its 2001/02 default received this week mixed results. New York Federal Judge Thomas Griesa has issued a ruling urging Argentina to pay 54.33 million Euros (US$75.1 million) to the Capital Ventures International Fund.
The Argentine government -represented by Cleary, Gottlieb, Steen & Hamilton LLP- is expected to appeal the ruling within the next few weeks.
The amount totals 28.3 million Euros of capital plus interest of 26 million Euros. Griesa's ruling ordered the public titles involved in the suit can't be sold or transferred without notice.
Argentina swapped some 12.6 billion US dollars in defaulted bonds for new debt last year, seeking to reduce lawsuits by holdout creditors and improve credit conditions for state and private entities.
About 92% of the record 100 billion USD in debt that Argentina stopped servicing in 2002 has been exchanged, at a steep loss for bondholders, during swaps in 2005 and 2010.
Despite these efforts, the holdouts who rejected the government debt swaps are still suing to recover the full value of the defaulted bonds, hampering Argentina's bid to return to global credit markets nine years after its default.
Should Argentina launch a new issue in international capital markets, it faces the threat that some of its assets could be seized as holdouts try to enforce multibillion-dollar court judgments against the country.
So-called vulture funds vow to try to block any new debt operations by Argentina and in recent months they have taken fresh action in a New York court where Argentina argues the recent swaps are evidence of its good faith.
Precisely District Court Judge Griesa presides over a slew of lawsuits filed by holders of defaulted Argentine bonds, which includes class-action suits and complaints filed by individual investors.
He has granted several billion dollars in court judgments to litigating holdout creditors. So far they have not been able to collect any money since U.S. sovereign immunity laws protect most assets owned by a country abroad.
Argentina does not deny that it owes investors money for the defaulted bonds. But the government says it is legally unable and also unwilling to pay holdouts at a more favourable rate than the creditors who accepted its swaps.
Finally the good news: Argentina’s Economy Ministry reported this week that a French court lifted a US$1 billion embargo on Argentina's assets. The embargo - US$645 million of capital plus interest of US$440 million- was imposed on Air France accounts whose funds had been allocated to pay off a debt held by the airline against the Argentine government.
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www.youtube.com/watch?v=uT-szcranQs
“But the government says it is legally unable and also unwilling to pay holdouts at a more favourable rate than the creditors who accepted its swaps.” Lie. They want to get more money than the legal money :) that just can't be, Mr. Griesa.
Accept what we offer, or don't accept it :)
www.gregpalast.com/the-globalizer-who-came-in-from-the-cold/
Argentina will continue to have problems in the credit markets until she can show that she is not a thief.
Correct: Redhoyt is right.
Solution for the Argentinians: Learn from Iceland. they just said..F### You. It's not my debt, It's Menem and his gangsters who are hiding.
Strange how you refuse to accept what previous Governments have done.
Pay your debt's you thieving pirates.
#7 we are paying our debt, we are listening to you cry like a baby I think that is more then we owe.
www.gregpalast.com/the-globalizer-who-came-in-from-the-cold/
A. Pay a fraudulent, questionable debt.
B. F--k off
We should pay what we actually owe, as for the rest. B
Doesn't fit the context that all the argentinian posters use it for either, does it?
Because it's literally impossible for a government to commit an act of piracy, especially on land or in this case..on islands.
A Nation has to pay it debts....if its a Nation.
Iceland Debt Crisis has been “Solved” by an “Argentinean Style” restructuring of their so called “Debt” AND a extremely generous bail out from the IMF……..
Iceland default was about 5 Billion U$S = 16.666 $ per inhabitant
Argentina’s default was about 95 billion U$S = 2.375 $ per inhabitant
Icelanders are, as a matter of fact, paying a smaller percentage of their “debt” from their own pockets than Argentineans.
And rightly so…….
Most of that debt was a Credit Circus organized by smart London Bankers…..
Educate yourself
edition.cnn.com/2010/BUSINESS/03/07/iceland.bailout.vote/index.html
www.cityam.com/news-and-analysis/imf-iceland-stabilising-debt-crisis-eases
Iceland is paying its Banks debts.
The rest supercilious, irrelevant and nonsense.
Grow up please in Argentine occupied Patagonia.
Chuckle chuckle.
www.gregpalast.com/the-globalizer-who-came-in-from-the-cold/
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