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Montevideo, November 20th 2018 - 00:08 UTC

Argentina insists on Griesa for some insurance against the RUFO clause

Friday, July 25th 2014 - 05:14 UTC
Full article 9 comments
The latest release followed a meeting between President Cristina Fernandez and minister Kicillof The latest release followed a meeting between President Cristina Fernandez and minister Kicillof

After failing to reach an agreement during Thursday's meeting with court-appointed mediator Daniel Pollack, Argentina reiterated that there could be no negotiations with speculative funds or 'vulture funds' until judge Thomas Griesa provides some insurance against possible liabilities related to the 'Rights upon Future Offers' (RUFO) clause.

The stipulation held with bondholders that entered 2005 and 2010 debt swaps dictates that Argentina give restructured titles the same payment conditions as those negotiated afterwards. Argentina maintains that paying holdout investors in full would leave them open to lawsuits from those creditors who accepted 'haircuts' on the bonds defaulted in 2001.

“Just as it was expressed by Argentina before judge Griesa, the reasons why it is necessary to put in place some type of financial instrument that gives the Republic security regarding risks associated with the RUFO clause were explained,” a statement from the Economy Ministry stated on Thursday evening, detailing the events of talks with Pollack.

“It was signaled that if the plaintiffs ['vulture funds'] do not grant those guarantees to the Republic, a stay will continue to be the best option to allow progress towards a solution reached in fair, equitable, legal and sustainable conditions for 100% of creditors.”

With this in mind, the communiqué states that “the Republic expresses its concern for the lack of resolution on the part of judge Griesa in the audience of July 22, regarding the motions and alternatives presented to the court, including the presentations of restructured bondholders and various financial institutions; he continues to block the reception of funds already paid by Argentina.”

The statement was prepared following a meeting between Economy minister Axel Kicillof and President Cristina Fernández Thursday evening. The next talks between speculative funds and representatives of the Argentine government are scheduled for Friday at 11 a.m. at Pollack's office in New York.
 

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  • Conqueror

    This is a reprint of the article in the Buenos Aires Herald. http://www.buenosairesherald.com/article/165437/argentina-insists-on-guarantees-for-rufo-clause-protection
    It is, of course, a lie. Where exactly has argieland “negotiated” payment terms afterwards. IF it were to be honest, for a change, and comply with Judge Griesa's order, it would have negotiated nothing.

    There is now no doubt that argieland must be made to suffer. That the hedge funds seize every asset that they can. That they bring argieland, not to its knees but down on its belly begging for mercy.

    Of course, it's the people who will suffer. CFK and co. will still be able to have their dinner parties and so forth. But she and they care nothing for the people. She could announce, publicly, that she was agreeing, under protest, in order to save “her” people from pain. She won't though.

    Jul 25th, 2014 - 09:38 am 0
  • hurricane

    Let's see. I won't even talk to you about the lawsuit that I lost all the way to SCOTUS unless you hold me harmless from the last stupid contract I signed. Then after you do that, go get the broom from the wicked witch of the north and then we'll see if I feel like talking.

    Jul 25th, 2014 - 11:02 am 0
  • ChrisR

    The child and the Mad Woman © ElaineB 2014.

    That picture will be likened to the The Last Supper, and that ended really well, just like this fiasco is going to, NOT.

    Jul 25th, 2014 - 11:58 am 0
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