Tuesday, November 6th 2012 - 20:04 UTC

Argentina reiterates it will use all legal means to defend position against US court ruling

Argentina will use all legal means to defend its position against a US court ruling that would force the country to repay creditors who sued to collect on defaulted Argentine bonds, Economy Minister Hernan Lorenzino reiterated in Mexico.

Economy minister Lorenzino: ‘vulture funds’ won’t prevent Argentina from honouring commitment to bondholders who agreed to debt restructuring

Late last month, a federal appeals court in New York ruled that Argentina violated bond provisions to treat all creditors equally when it made payments to creditors who accepted the swaps, while refusing to pay the holdouts, estimated in several billion dollars and which Argentine president describes as ‘vulture funds’.

Lorenzino said Argentina would honour debt payments to bond holders who agreed to the restructuring. He added that the funds for the December payments are already deposited at the Argentine central bank.

”We will use all (legal) avenues to continue defending Argentina's position before the courts,“ Lorenzino told reporters on the sidelines of the G20 meeting of finance chiefs in Mexico City.

”We will not allow the actions of ‘vulture funds’ to prevent Argentina from honouring its commitments to bondholders who agreed to the debt restructuring.“

Fitch has put Argentina's foreign currency ratings on watch negative, stating the ruling ”increased uncertainty about Argentina's ability to service its international securities issued under New York law on a timely basis using the US financial system”.

In the ruling Circuit Judge Barrington Parker said that “nothing in the record supports Argentina's blanket assertion that the injunctions will plunge the Republic into a new financial and economic crisis”, thus agreeing with Judge Griesa that with more than 40 billion dollars in foreign reserves, Argentina has the ability to pay the holdouts.

“We hold that Argentina breached its promise,” the appellate court said, summarizing a 29-page ruling that could make it difficult for Argentina to use the US financial system unless it complies.

Griesa said any financial institution that processes Argentina's payments to the holders of restructured bonds must ensure that the holdouts are paid an equal amount to avoid violating the court's order. Effectively, this would force US banks to stop the payments unless Argentina proves it's complying with the ruling.

The appeals court sent the case back to Griesa’s court to clarify how a payment formula set by the judge is intended to work and to determine how the orders apply to intermediary banks and other third parties.

24 comments Feed

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1 briton (#) Nov 06th, 2012 - 08:35 pm Report abuse
Argentina reiterates it will use all legal means to defend position ??

Well that ends their chances then,
And this bloggy.lol.
2 Pirate Love (#) Nov 06th, 2012 - 09:01 pm Report abuse
huff and puff, but your debt will be paid one way or another.
3 toooldtodieyoung (#) Nov 06th, 2012 - 09:13 pm Report abuse
“Argentina reiterates it will use all legal means to defend position against US court ruling”

What position?

The bend-over-and-take-it-without-crying-like-a-b*tch position?

Argentina hasn't got a defendable position on this. They borrowed money, the people they borrowed it from what it back, they have to pay up...........................end of.
4 Guzz (#) Nov 06th, 2012 - 09:53 pm Report abuse
Yours wont... Hypocrite ;)
5 reality check (#) Nov 06th, 2012 - 10:46 pm Report abuse
Love to see Argentinas legal bill? lawyers preparing briefs all over the world. Shit waht am I saying? they won't pay it anyway.

In retrospect, I expect those are the only bills they do probably pay, on time and in full!
6 Beef (#) Nov 06th, 2012 - 11:25 pm Report abuse
Guzz -Please explain how our debts won't be paid off? We have more assets than debts.

Is the UK going to default or something.
7 Guzz (#) Nov 06th, 2012 - 11:29 pm Report abuse
Trillions in debt mate, what are you going to sell to pay that off? Buckingham Palace, Big Ben and Sankt Paul's? Heck, throw in the Nelson statue in Trafalgar and you'll only be missing some 98%...
8 briton (#) Nov 07th, 2012 - 01:05 am Report abuse
1.2 trillion
the yanks cir,12 trillion.
russia=no idea
Eu=dont dare ask.
but hey different circumstances, diferent countries,

fact is the UK is not broke,
and ghana does not hold our ship,

but to be fair , sooner or later this problem will have to be dealt with, as , longer a ship remains idle, the better chances it will not sail again.
9 willi1 (#) Nov 07th, 2012 - 08:23 am Report abuse
Lorenzino only speaks about the vultures. What about the thousands of private bondholders being unpaid? They don´t exist in the mind of this crook.
10 Anbar (#) Nov 07th, 2012 - 10:30 am Report abuse
“Guzz -Please explain how our debts won't be paid off? We have more assets than debts.”

standard guzz tactic is, regardless of news article, relate it to the UK as a diversion...and thenceforward derail the entire thread and move fault from Argentine.

you fall for it every time.

just ignore him/her
11 briton (#) Nov 07th, 2012 - 01:39 pm Report abuse
guzz is in denmark
sizzle sizzle
12 Joe Bloggs (#) Nov 07th, 2012 - 08:24 pm Report abuse
I think our troll Guzz has a lot in common with TTT. In fact, maybe a little too much. I wonder. TTT, you aren't are you? If so how many f#*ing tags do you need?
13 toooldtodieyoung (#) Nov 07th, 2012 - 08:44 pm Report abuse
10 Anbar

Exactly............. He is like that whiny, needy kid in class that everyone hates but won't shut up.

11 briton

No he isn't. He's in Sweden.............isn't he?

12 Joe Bloggs

Guzz hasn't got that much in common with TTT. TTT was annoying whereas friend Guzz is just a whiny little b*tch.

Like I said Argentina better assume the position, 'cos the WTO / World Bank c**kshafting is acoming, and guess what boys and girls? they ain't going to lube up first...........
14 Guzz (#) Nov 07th, 2012 - 08:47 pm Report abuse
I truly don't deserve this much attention...
15 Joe Bloggs (#) Nov 07th, 2012 - 08:56 pm Report abuse
... and another one of TTT's characteristics. Loves the attention and can't handle it when he's not getting it.

I reckon there are only about 3 people on here contributing ALL of the pro-Argentine posts. Nobody in Argentina really cares about the Falklands at all. It's just a few deadbeats trying to make out there is a ground swell of support.

The best thing the pro-Falklands side of the debate could do would be to walk away from Mercopress on mass and leave the three deadbeats to it. They could have monumental self gratification. Or mass-gratification. Maybe even mass-debating?
16 Guzz (#) Nov 07th, 2012 - 09:04 pm Report abuse
“Nobody in Argentina really cares about the Falklands at all.”

On that, we can agree :)

But one thing whole SA agrees on, is that the presence of the UK in your experimental alternative reality, is a no-go...
17 Joe Bloggs (#) Nov 07th, 2012 - 09:17 pm Report abuse

So do something about it.
18 Guzz (#) Nov 07th, 2012 - 09:23 pm Report abuse
Of course, but not yet. As it is, the UK is doing it for us, bit by bit, and we are not in a hurry, really ;)
19 Joe Bloggs (#) Nov 07th, 2012 - 09:50 pm Report abuse

Oh well that's what I call a win win situation because we're in no hurry either.
20 Guzz (#) Nov 07th, 2012 - 10:01 pm Report abuse
Great then!
Lets see who's side time is on... ;)
21 Joe Bloggs (#) Nov 07th, 2012 - 10:15 pm Report abuse
20 Guzz

I've out a note in my diary to check back with you in 50 years if I haven't already croaked it.
22 briton (#) Nov 07th, 2012 - 10:53 pm Report abuse
Lets see who's side time is on

time is irrelevent

said father time,
as the brits have here for over 2,000 years and argentina for under 200,

we will stick with the brits.
23 Don Alberto (#) Nov 09th, 2012 - 09:06 am Report abuse
“Argentina reiterates it will use all legal means to defend position against US court ruling”

a couple of letters missing, it should read

“Argentina reiterates it will use all illegal means to defend position against US court ruling”
24 British_Kirchnerist (#) Nov 09th, 2012 - 11:26 am Report abuse
Good to see Cristina fighting against injustice to the end, and in the end she will win =)

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