MercoPress, en Español

Montevideo, November 15th 2018 - 16:49 UTC

Argentine reserves below 28bn dollars; bonds payments of 170m on Tuesday

Tuesday, September 30th 2014 - 05:11 UTC
Full article 19 comments
The central bank international reserves now stand at 27.944bn dollars, down 99m from Friday The central bank international reserves now stand at 27.944bn dollars, down 99m from Friday

The informal of “blue” dollar in Argentina fell back 15 cents to 15.55 Pesos after it skyrocketed 75 cents last week and scraping 16 Pesos. The formal US dollar meantime advanced three cents to 8.49 Pesos at the end of trading in Buenos Aires City banks and foreign exchange offices. The gap between the two rates dropped to 83.9%.

 The blue-chip swap rate was up by 21 cents to 14.90 Pesos while the stock exchange rate climbed 28 cents to 15.14 pesos.

Meanwhile the Argentine central bank international reserves dropped below 28bn dollars to 27.944 following a 99m loss on Monday compared to last Friday. As usual the bank entered trading on Monday with an estimated 50 million dollars but there were not enough purchased to compensate.

On Tuesday the central bank is scheduled to deposit 170 million dollars to pay bond holders coupon at a special account in the Banco Nacion, which is the new fiduciary agent of Argentina, following the New York court rulings which blocked funds at the Bank of New York Mellon and declared Argentina in contempt of court.

Of that sum 16m are ruled by Argentine law while the rest under US, Europe and Japan jurisdiction.

The money deposited will pay 2005 and 2010 restructured bond holders in dollars, Euros and Yens. Argentina is also scheduled to pay 85m in October; 207m in November and 852m in December, plus other maturities in Pesos.

Payments will be done either in Argentina or France or wired to wherever demanded in accordance with the latest bill approved by the Argentine congress which allows a change of location to pay bond holders.

The bill was voted to circumvent Judge Thomas Griesa ruling which demands simultaneous payment of restructured bonds and the so called 'holdouts' which Argentine describes as 'vulture funds', and have a decision to be paid full value plus interests for their bonds, since they refused to accept Argentina's restructured bonds conditions.

The sum involved is 1.3bn dollars plus interests but Argentina refuses point blank to pay that sum but rather offers the same conditions as the rest of restructured bonds.

The bill also contemplates naming a new fiduciary agent, in this case the Banco Nacion to avoid the Bank of New York Mellon which has 586m dollars of a previous payment frozen on orders from Judge Griesa.

On Monday Judge Griesa declared Argentina in contempt of court due to the nation's actions in attempting to change debt jurisdictions as a result of the ongoing judicial conflict with holdout investors presided over by the US magistrate.

Top Comments

Disclaimer & comment rules
  • Klingon

    Look for the dollar to jump today and climb a little tomorrow also.
    Higher the better for me :)
    Blue is my favorite color.

    Sep 30th, 2014 - 11:20 am 0
  • owl61

    I have an apt in Bs As and I confess it's cool to be able to dine out at great restaurants on the cheap, but when I realize that so many of the Arg middle classes are suffering because of the factors that strengthened my blue dollar I begin to lose my appetite. Be reasonable. Don't be so egocentric.

    Sep 30th, 2014 - 03:30 pm 0
  • ElaineB

    @2 I think a lot of the 'glee' is posted here to annoy the trolls rather than directed at the Argentine people in general. A lot of people here express sympathy - especially for the middle classes that actually work for a living - for the Argentines who are going to lose everything again. I heard a lot of first-hand accounts from the last crash and it is shocking. And yet, they allowed the K's to do it to them again. That is puzzling.

    Sep 30th, 2014 - 04:16 pm 0
Read all comments

Commenting for this story is now closed.
If you have a Facebook account, become a fan and comment on our Facebook Page!