Argentina “will not enter in default” and will honour all re-scheduled bonds
“The only possibility” Argentina contemplates regarding its debt is “to honour all payments” of creditors that entered debt swaps after the sovereign default of 2001, said Economy minister Hernan Lorenzino who underlined that Argentina “cannot and will not enter in default”.
“We have an obligation and a commitment to our creditors, who are those who accepted the debt-swaps offered in 2005 and 2010”, Lorenzino said in an interview published by Buenos Aires newspaper Página/12.
The statements came after the presentation by Argentina to New York Judge Thomas Griesa to maintain his order blocking payment on defaulted sovereign bonds to holdout investors until lingering questions are settled in a higher court's appeals process.
Lorenzino also warned that “some are betting a lot of money to get rating agencies say that Argentina defaulted on its obligations since, whether that happens or not, then they’ll be able to cash insurances they bought in the market.”
Anyway, the minister insisted “Argentina will fulfil all obligations to its creditors”, and stressed that “the country not only wants to meet all payments, but also has the means to do it”.
Starting next 2 December Argentina is scheduled to pay interest on re-scheduled sovereign bonds and has repeatedly said it has the funds.
However on that same week US Judge Griesa, acting on instructions from an Appeals court must implement an equal treatment to creditors clause, that is those who re-scheduled and the holdouts. Argentina calls holdouts ‘vulture funds’ and refuses to pay them.
Adding to the controversy Argentine ambassador to the US Jorge Argüello repeated on Sunday that US President Obama administration has already rejected one of Judge Thomas Griesa’s interpretations of the clause involving equal treatment to creditors for considering it “a potential conflict for the world’s financial markets.”
“The US government has already rejected Judge Thomas Griesa’s ‘new’ interpretation of the ‘pari passu’ clause when vulture funds sue our nation, since it would result in a potential conflict for the world’s financial markets,” the diplomat said in the fourteenth newsletter that the Argentine Embassy in Washington will deliver to US members of Congress and political leaders.
Argüello points out that the US government responded to Griesa’s interpretations this year by filing an “Amicus Curiae” in which they warned of the “possible global financial risks that could result of the distorted interpretation of a clause named ‘pari passu’ (equal conditions), found in several instruments of sovereign debt.”
According to the Argentine Embassy, “the US affirms that the District Court’s interpretation of the ‘pari passu’ clause deviates from market expectations and is contrary to the US economic policy”.
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22 comments Feed
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They have created an a big song and dance over something that they should have done anyway.
Just shut up and pay the bill. This is getting so old now...............pay up.
Is that a flying pig in the background ?
online.wsj.com/article_email/SB10001424127887323551004578118980029057450-lMyQjAxMTAyMDEwOTExNDkyWj.html?mod=wsj_valetbottom_email
Unless a miracle happens in New York courts (plural!), the stay of Judge Griesa's PARI PASSU injunctions will be dissolved in a matter of months, may be (hopefully) weeks, and then they will have to choose and pay a toll:
- new default on exchange bonds (that is: Lorenzino's declarations are lies);
- pay up some holdouts (that is: Lorenzino's declarations are lies ... welcome lies in this case);
- not complying with US court's PARI PASSU injunction (that is: Argentina's affidavit is a lie)
and multiple choices are allowed ;-)
Of course Argentine people is free to let insane robbers rule their country, ignoring their international obligations, all of them ... eventually experimenting the pleasures of living in a novel South American Zimbawe.
Sadly it looks like that patriottic, reasonable Argentines have little chances to change for better their government in the near future.
Also if these people want some respect they should cut and wash their hair, try to wear suits that fit and clean shoes. Rgs are always a mess.
1-the checks in the mail
2-I love you
and
3-I won't......lol
and now for a new forth
4-Argentina will not default!
The world 'community standard' is trending towards creased individual rights.
Yes, and the sooner the better.
Get rid of TMBOA and all the crooks with a new government, mend the fences with the real world and get back on another crest for the country.
It will never get better with this bunch of crooks in power.
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