Tuesday, July 29th 2014 - 06:59 UTC

Pollack confirms meeting with Argentina on Tuesday, 24 hours before 'D' day

Argentina will sent a negotiation team to New York on Monday for further talks with a US court-appointed mediator Daniel Pollack in its debt dispute with “holdout” investors, Cabinet Chief Jorge Capitanich said earlier, with just two days left to avert a default.

 Argentina has until Wednesday to either pay the New York hedge funds suing for full repayment on their bonds or reach a deal.

“I again urged direct, face-to-face conversations with the Bondholders, but that will not happen tomorrow” said Pollack

 In a statement released later in the day, Pollack confirmed he will be receiving the Argentine delegation at his office on Tuesday at 12 pm (Argentina time) and he “urged direct, face-to-face conversations with the Bondholders, but that will not happen tomorrow.”

Argentina has until Wednesday to either pay the New York hedge funds suing for full repayment on their bonds or reach a deal.

Otherwise, barring a suspension of the court-ordered July 30 deadline, Argentina will default for the second time in 12 years.

Pollack has issued two statements Monday morning.

In the latest, he said: ”I received a telephone call from the Government of the Republic of Argentina advising me that the delegation of Technical, Financial and Legal representatives of the Republic who were in my office last Thursday and, briefly, on Friday morning, will fly from Buenos Aires tonight (Monday) to meet with me tomorrow at 11:00 am.“ ”I again urged direct, face-to-face conversations with the Bondholders, but that will not happen tomorrow,“ the statement added.

Capitanich said the government representatives included Finance Secretary Pablo Lopez, Attorney General Angelina Abbona, as well as the Economy Ministry's Legal and Technical Secretary Federico Thea.

Argentine government sources said Economy Minister Axel Kicillof, the country's chief dealmaker who has brokered deals with foreign creditors and investors this year, will not be in the group because he's in Caracas, attending a Mercosur summit with President Cristina Fernandez.

Negotiations have made scant progress in the past three weeks. If the deadlock persists, US District Judge Griesa will prevent Argentina from making a July 30 deadline for a coupon payment on exchanged bonds.

Argentina argues it cannot cut a deal now that risks breaking a clause barring the country from offering better terms to investors than those in the bond swaps that were accepted by 92.4% of its creditors in 2005 and 2010.

A group of those ”exchange bondholders” has offered to waive the so-called RUFO clause, the Financial Times reported on Monday, citing unnamed sources.

The FT reported that holders of more than 4 billion dollars of Argentina's discount and par Eurobonds sent a letter to Pollack offering to speed the settlement talks.

Argentina's isolation from global capital markets means an eventual default would be highly unlikely to send shockwaves through emerging markets worldwide. But it will hurt a domestic economy already in recession and battling soaring inflation.

The speculative funds bought Argentine junk bonds on the cheap after its 100 billion default in 2002 and then rejected the terms of restructuring.

The veteran judge barred Argentina from servicing payments on its exchanged bonds until it settled with the holdouts. Griesa blocked a late June interest payment which now sits in limbo with the trustee agent BNY Mellon. His order prevents the bank from transferring the funds on.

22 comments Feed

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1 willi1 (#) Jul 29th, 2014 - 08:07 am Report abuse
another group of lower foot soldiers on the way to the front. they have nothing to say nor to decide but only to talk and steal time.
and the officers are at mercosur summit, a nonsens event like the speaches of ck an kicillof will proof.
2 Klingon (#) Jul 29th, 2014 - 09:20 am Report abuse
I guess Aerolineas Argentinas is making some cash out of flying the minions back and forth.
Is the old hag going to ask Mad uro for for usd? His honey jar is empty too.
The blue is now at 13 here in BA.
3 Britworker (#) Jul 29th, 2014 - 09:54 am Report abuse
I fear an 11th hour deal, oh the drama!
4 Idlehands (#) Jul 29th, 2014 - 12:14 pm Report abuse
24 hours to go and the Argentine delegation still refuses to even meet with the holdout creditors. No prizes for guessing they've chosen to default.
5 Pete Bog (#) Jul 29th, 2014 - 12:36 pm Report abuse
“Argentine government sources said Economy Minister Axel Kicillof, the country's chief dealmaker who has brokered deals with foreign creditors and investors this year, will not be in the group because he's in Caracas, attending a Mercosur summit with President Cristina Fernandez.”

Clearly, fantasy speeches about the Malvinas are more important than saving your country from collapse.

Ostrich-head-sand.
6 Welsh Wizard (#) Jul 29th, 2014 - 01:05 pm Report abuse
And now we're are being told that the concept of “technical default” doesn't exist. Ostrich, meet sand.
7 owl61 (#) Jul 29th, 2014 - 02:11 pm Report abuse
The probably with sticking your head in the sand, Ostrich-like, is that your ass is exposed and vulnerable.
8 reality check (#) Jul 29th, 2014 - 04:41 pm Report abuse
Ostrich head in sand.

I think a better anology would be, head up you know where?

It's infantile, ingnore the problem and it will go away!
9 Pugol-H (#) Jul 29th, 2014 - 06:27 pm Report abuse
With no one present on the Argy side with the power to “do a deal”, default, technical or otherwise, does seem the most likely outcome.

Which raises the question, what then?

Will the “vulture funds” simply fade away, or die of old age, or do they have a “phase two” plan.

I suspect that “default” will not be the end of this, it wasn’t the end of it last time Argentina defaulted, it was just the beginning.

These “Vultures” are unlikely to give up now, watch this space.

Meanwhile the Argentinian economy and by extension people, take another hit that they really don’t need.

Another triumph of diplomacy for CFK & Co.
10 reality check (#) Jul 29th, 2014 - 06:30 pm Report abuse
1930 GMT.

NO RESULT YET.

TICK TOCK, TICK TOCK.
11 paulcedron (#) Jul 29th, 2014 - 06:44 pm Report abuse
the default means nothing compared with the internal problems of the argentine economy.
the price of the blue dollar rose 30 cent yesterday and now decreased 20 cents only because of rumours and nothing changed substantially.
the real problems are inflation and stagnation.
with or without default nobody is going to invest their dollars here while kirchner + kicillof are in charge.
12 redp0ll (#) Jul 29th, 2014 - 07:16 pm Report abuse
@11 For a change I agree with you paul.
13 Klingon (#) Jul 29th, 2014 - 07:58 pm Report abuse
Paul, You are correct. I don't see any of our domestic problems being solved until the next government gets in. Expect more of the same for the next year.
14 Troy Tempest (#) Jul 29th, 2014 - 08:55 pm Report abuse
Sad for the Argentine people.

It's too bad that the culprits, CFK et al will probably not be held accountable - they 'll slip their heads out of the noose and leave others holding the bag.

You have my sympathies.
15 ChrisR (#) Jul 29th, 2014 - 09:35 pm Report abuse
@ 11
“the default means nothing compared with the internal problems of the argentine economy.”

I can see your point BUT a default does dramatically reduce the options for the rest of the economy: your final paragraph sums it up exactly.
16 Klingon (#) Jul 30th, 2014 - 12:33 am Report abuse
Looks like Killichoff is in NY to hammer out some kind of last minute deal.
They take brinkmanship to a whole new level.
17 commonsparrow (#) Jul 30th, 2014 - 02:06 am Report abuse
The u.s. does not rewrite the constitution to fit the situation . Argentina will be held accountable for the disrespect of the rulings, for the defiance to the court orders for still attempting illegal manuevers. Negotiate and make it quick.
18 Jay Bee (#) Jul 30th, 2014 - 05:33 am Report abuse
In recession, battling high inflation, likely about to default and little or no access to money markets. It was hardly more than a year ago that TMBOA was telling us that they were in great shape.

What was the purpose of making INDEC lie? Was that to prevent the local population from panicking? Would it be worse for them by now if INDEC reported accurately?
19 MagnusMaster (#) Jul 30th, 2014 - 07:59 am Report abuse
@18 They fudged the numbers to pay less on inflation-indexed bonds.
20 ElaineB (#) Jul 30th, 2014 - 08:37 am Report abuse
So Kicillof is in New York and not at the Mercosur summit in Venezuela. Some news items out of Buenos Aires are reporting him being in Venezuela. Why the secrecy? He is not attending an AA meeting. Why don't they tell the people of Argentina what is really happening? The government works for the people.
21 Pugol-H (#) Jul 30th, 2014 - 06:16 pm Report abuse
@ 20 ElaineB
Not in this case, it would seem.
22 MagnusMaster (#) Jul 30th, 2014 - 10:43 pm Report abuse
@20 Since when the government of Argentina works for the people?

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