Wednesday, July 30th 2014 - 07:10 UTC

Cristina Fernandez thanks Mercosur support and again attacked Judge Griesa

President Cristina Fernández addressed fellow heads of state at the Mercosur summit in Caracas, where she thanked members of the bloc for their support over the ongoing fight with holdout investors in the New York courts and underlined that Argentina “has paid debt obligations religiously”.

The official 'family' picture of Mercosur leaders. Argentina now holds the rotating six-month chair

President Cristina Fernandez addressing her peers at the summit, where she criticized the conduct of the speculative funds

 The Argentine president spoke on Tuesday, just one day before a deadline for payment of debt interest expires for those bondholders who did enter restructuring in 2005 and 2010. Funds directed to those creditors have been blocked by judge Thomas Griesa, on the request of the holdouts or so-called 'vulture funds'.

“I profoundly thank all of the Mercosur members for their solidarity,” Cristina remarked as she spoke to the summit, rescheduled from the original date of December 2013.

She pointed out that Argentina had paid debt obligations “religiously” since restructuring bonds defaulted in the economic crisis of 2001, and that it had done so “without entering capital markets, with its own resources... [without] indebting ourselves further to cancel our debts from 2005 onwards”.

CFK criticized the conduct of holdouts, asserting that the bonds for which they now demanded 1.6 billion dollars were purchased for just 41 million dollars in the aftermath of default. “Right now the debt swap is open, if they entered they would pick up a profit of 300%,” she argued.

The president also strongly dismissed the idea that should Wednesday 30 July deadline pass without progress with Griesa or the 'vultures', Argentina would fall once again into default.

“They try to frighten us by saying if we do not do what they say the 10 plagues of Egypt will be upon us. We have already suffered the 10 plagues, in 2001, when a different government did everything dictated by those outside,” she affirmed.

“They are trying to ruffle feathers with a default but it makes no sense, that happens when one does not pay and Argentina has paid”.

Cristina Fernandez said that Griesa “is no magistrate” since he has not ruled fairly on the blocking and unblocking of funds deposited by the Argentine government to pay bondholders.

The president was referring to Judge Griesa's decision to allow Argentina to make a one-time payment this week on bonds issued under Argentine law despite the blocking of funds deposited in a New York bank to pay the 30 June coupon to restructured bonds.

“These are contradictory resolutions: first yes, then no and now yes again bonds ruled by Argentine law can collect their monies”.

The Judge authorized payments on restructured bonds governed by Argentine law because those securities can't be distinguished from bonds the country gave Spanish oil company Repsol earlier this year in compensation for the expropriation of its local subsidiary.

The Repsol settlement bonds aren't part of the defaulted bond dispute.

“The court cannot enjoin payment on the dollar-denominated exchange bonds without also upsetting the Repsol settlement,” Judge Griesa said in his decision. The judge ordered the parties to come up with a way to distinguish between the Repsol and restructured bonds before the next interest payment

Earlier in the day, regional leaders arrived at the Simon Bolivar square to place a wreath in honor of the Venezuelan Liberator and to pose for the official group photo. However President Cristina Fernandez arrived 37 minutes late.

They convened at the “Yellow House” –Venezuela’s Foreign Ministry- for a private reunion before the plenary session of the summit, during which the pro-tempore presidency of the bloc was transferred from Venezuela to Argentina.

Foreign Minister Héctor Timerman stressed Argentina’s commitment “to keep working on the consolidation of Mercosur during its pro tempore presidency.”

Speaking during the meeting of Mercosur foreign ministers in Venezuela, Timerman called for member states to work together toward “equal and fair rules so that sovereign debt restructuring processes can prevent actions of vulture funds.”

Economy Minister Axel Kicillof, Industry Minister Debora Giorgi, Domestic Trade Secretary Augusto Costa and Argentine Ambassador to Mercosur Juan Manuel Abal Medina also joined CFK in Venezuela.

22 comments Feed

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1 zathras (#) Jul 30th, 2014 - 07:32 am Report abuse
So much to say...

My first thought when looking at the group picture was how much the economies would improve and corruption go down with one well placed hand grenade.
My second thought was OMG I've turned into “Conqueror”.

Then I read the article and find out the Drama Queen turned up 37 minutes late. Note not over 30 minutes or almost 40 minutes, but near as darn in 37 minutes. Someone must have been timing her. Very impolite of the mad cow.

So instead of trying everything to pay of the debt she was once again having a go at the Judge, smart move...NOT.
2 willi1 (#) Jul 30th, 2014 - 07:59 am Report abuse
...and ck is the 11th plague - a typical arg plague.
thank jave (or god) this plague will end in 1 year and the arg people can walk out of their prison into a commercial freedom with milk and honey.
3 Porto Margaret (#) Jul 30th, 2014 - 08:03 am Report abuse
Well, I suppose missing 37 minutes of ...

....'Squeal, squeal and squeal.'

must be counted as a teeny blessing.
4 golfcronie (#) Jul 30th, 2014 - 08:07 am Report abuse
I hardly think it will be milk and honey,it will take generations of Argies to get over the last 50 years, they are so rich in resources, why are they not exploiting them? Answer: ineptitude, arrogance, and of course the scourge of Latam countries CORRUPTION
5 Brit Bob (#) Jul 30th, 2014 - 08:29 am Report abuse
CFK and Co blame everyone but themselves for their inept political and economic policies. Judgment day approaches....
6 ElaineB (#) Jul 30th, 2014 - 08:58 am Report abuse
@1 Your comment reminded me of the satyrical song that included the words,

“If I had a bomb and a plane to drop it from, I'd drop it on you, 'world' leaders,
I've had it up to here with your verbal diarrhoea, you power crazy bleeders”.

I watched a little of the Mercosur meeting online last night - I must get out more - and Dilma looked pissed off; lips pursed like a cat's arse. I recommend it for anyone having trouble sleeping, it was a snooze-fest.
7 ChrisR (#) Jul 30th, 2014 - 10:43 am Report abuse
@ 6 ElaineB

Love the description of Dilma. Ha, ha, ha.

Probably because TMBOA was hogging the limelight.

Only two women but six c**ts in the picture as far as I can see.
8 bestonlinenameever (#) Jul 30th, 2014 - 11:16 am Report abuse
How does purchased for $41m and want $1.6B equal 300% profit?
9 Mr Ed (#) Jul 30th, 2014 - 11:24 am Report abuse
@1 It is very disappointing for people to think in terms of hand grenades as a way to change things. We should abhor violence except in defence of self or others.

However, I think it is perfectly acceptable to hope for a meteorite.
10 Idlehands (#) Jul 30th, 2014 - 11:29 am Report abuse
8 bestonlinenameever

The 300% profit is if they accepted the terms of the debt swap - ie a 70% discount on the face value of the bonds - which would mathematically be roughly $547m based on these figures.

Ie a 300% profit on $41m would be a return of $164m
$547m discounted 70% = $164m

However it depends what they mean by “300% profit”
11 Brasileiro (#) Jul 30th, 2014 - 12:53 pm Report abuse
Mercosur is the most complete, dynamic and successful block of the Americas.
12 yankeeboy (#) Jul 30th, 2014 - 01:37 pm Report abuse
11. As long as you don't count the Pacific Alliance.

And your measurements are exactly opposite of what the rest of the world would deem as success.

The rest of the world would say that MercoSur is a failure. At its core it was supposed to be a free trade zone. Its not even that any longer. It is just a bunch of Marxist Monkeys lying to its people as their states fail.
Except for Paraguay of course
13 Brasileiro (#) Jul 30th, 2014 - 01:50 pm Report abuse
What is the “world”? Are you trying to give some explanation about your world? Your world is not my world!

Lack the most important thing for the Pacific Alliance: Internal Market! If there is no domestic market, our partners will never be economic allies, will only be competing with each other.
14 yankeeboy (#) Jul 30th, 2014 - 01:58 pm Report abuse
13. So which has the better internal markets? Venezuela, Uruguay or Argentina?

I think I could get a house in Caracas for a bag of bread right now.
15 Brasileiro (#) Jul 30th, 2014 - 02:05 pm Report abuse
Brazil is a giant market! This is enough.
16 yankeeboy (#) Jul 30th, 2014 - 02:22 pm Report abuse
15. It's not big enough at all
and you're entering a recession.
11% of your population lives on less than U$2/day
100MM of your population makes less than U$10/day

So they're not buying anything but the bare necessities.

Brazil is entering a recession.

So my guess is The Marxist Monkeys running your country will try to print their way into prosperity.
Then inflation will get out of control
Then they'll devalue

It is all they know.
17 golfcronie (#) Jul 30th, 2014 - 04:52 pm Report abuse
I agree Brazil is a giant market. Problem is you don't make anything to sell and you can't afford to import, so what happens now?
18 Pugol-H (#) Jul 30th, 2014 - 05:56 pm Report abuse
Judge Griesa has made a decision on the legal meaning of the contract (the bonds in question), something which as a Judge he is supposed to do.

The response of CFK & Co to a decision they do not like, is to attack the Judge and the system, then to try and garner political support from alleged allies to do what?

Bring enough political pressure to bare somewhere, which forces the Judge to change his mind.

Which won’t work in this case, but little wonder she has gotten so rich whilst running Argentina

@15 Brasileiro
A giant potential market perhaps.

Also one of the most unequal countries on the planet.

Until you even that out, all you have is a potential.

Which could easily go either way, good or bad.
19 yankeeboy (#) Jul 30th, 2014 - 06:27 pm Report abuse
Maybe Brasileiro is living in San Paulo and drinking bad water. SP is almost out so they are having to use the muck at the bottom that full of heavy metals. pollutants and viruses to keep SP with water.

That could explain a lot.

They better hope in rains soon.
20 BOTINHO (#) Jul 30th, 2014 - 08:22 pm Report abuse
When a country issues bonds, it benefits, as does the buyers of that debt.

Contract law around the world, except to the deadbeat illiterates, dictates that if you engage in borrowing, you also accept the terms of the repayment.

Most countries understand that.

Except one, or two.
21 Alistair Nigel (EUian) (#) Jul 31st, 2014 - 12:28 am Report abuse

Your country world joke. In that forsaken wasteland, the people who send others to war get better medicine than the ones who were sent.

No morals, and no money left, that is USA.
22 Pete Bog (#) Jul 31st, 2014 - 08:14 pm Report abuse
@21 Alistair
How much money have Mercosur stumped up to help Argentina avoid default?

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