Wednesday, March 16th 2016 - 17:29 UTC

Judge Griesa sends strong message of support for Argentina at crucial moment

As the Argentine congress started to debate an end to the 15-year litigation, United States District Judge Thomas Griesa sent a new message of support to Argentina by claiming he won’t allow any attempts to seize the funds to be used by Argentina to pay the holdout creditors.

“Any attempt to attach, restrain or otherwise encumber funds intended for settlement of any action would be contrary to the public interest,” Griesa said

Argentina is set to issue more than US$12 billion in bonds to obtain the funds to pay in cash the creditors who have already accepted the government’s offer.

Finance Minister Prat-Gay celebrated Griesa’s order: ”Investors now have the guarantee that the funds won’t be seized so there could be a larger interest”

Griesa's announcement arguing the settlements are of “critical importance to the economic health” of Argentina, came as Congress debated on the issue.

 “Any attempt to attach, restrain or otherwise encumber funds intended for settlement of any action would be contrary to the public interest,” Griesa said, adding that the settlements are of “critical importance to the economic health” of Argentina.

Argentina is set to issue more than US$12 billion in bonds to obtain the funds to pay in cash the creditors who have already accepted the government’s offer. There are still about 15% of creditors who haven’t reached a deal so there is a risk of them seeking to block the payment.

The order issued by the US judge also mentioned that the banks that will be part of the debt issuance will have to transfer the funds directly to the holdout funds. HSBC, Citibank, Wells Fargo, Bank of New York, Goldman Sachs, JP Morgan and State Street Bank are among those institutions.

The Argentine Finance Ministry headed by Alfonso Prat-Gay celebrated Griesa’s order, which not only protects the upcoming debt issuance but also gives an additional incentive for the remaining bondholders to accept the government’s offer. “Investors now have the guarantee that the funds won’t be seized so there could be a larger interest,” sources at the ministry said.

But the debt issuance is on hold until the Second US Circuit Court of Appeals in New York confirms Griesa’s ruling lifting the injunction against Argentina, which has until April 14 to pay the US$4.65 billion deal signed with the largest holdouts such as Elliott Management and Aurelius Capital.

Griesa’s ruling vacating the injunctions was conditioned on Argentina repealing two laws concerning its debts and paying creditors who by February 29 reached settlements with the Macri administration. The injunctions prevented Argentina from servicing its restructured debt until it paid the investors, who spurned its 2005 and 2010 debt restructurings.

21 comments Feed

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1 Briton (#) Mar 16th, 2016 - 08:19 pm Report abuse
Will they ever get their money back,

or is this just Argentina playing the waiting game, and hoping they all drop dead of boredom first.
2 Marti Llazo (#) Mar 16th, 2016 - 09:40 pm Report abuse
Griesa is planning to retire in a few weeks and this is one way for him to try to wash his hands. The new judge for his district will likely get to hear claims from the thousands of holdout bondholders who were denied the very pari passu that Griesa used to get Argentina to maybe consider paying its obligations.
3 Lucifer (#) Mar 16th, 2016 - 09:51 pm Report abuse
Griesa is a very honorable man.
So many other Judges could have made the lives of the Argentine Gov't very uncomfortable.
4 Marti Llazo (#) Mar 17th, 2016 - 12:11 am Report abuse
@3 Oh, yes, Griesa is considered essentially a saint in Argentina.....
5 chronic (#) Mar 17th, 2016 - 09:36 am Report abuse
There's a big but in all this that is conditioned on the 2nd circuit appeals court acquiescing to Griesa's position.

Now here is the twisted logic that you only hear from those of similarly ilk to the rg:

Gay Prat says that he is concerned that a possible attachment of proceeds will impair the sale of the wash out bonds. Decoded: Gay Pratt is concerned that he won't get an acceptable price for these bonds and that he may not be able to fully control the disbursement of the proceeds. The subterfuge: Since the receipts won't go into a NY escrow account he can divert them from their supposed purpose as Macaroni sees fit - not the US courts. The 2nd court of appeals gets this. The dilemma: If you are touched by or are required to touch a greased pig you're going to have grease on you. Griesa falls for the rg ploy - hence the intercession by the superior court. Nice try Macaroni - not. The rg subtext: If we sell the bonds and are forced to use the bulk or even all of the raise to satisfy NY claimants we may repudiate these as well since they were foisted on us not by an illicit domestic government but by a global cabal seeking to once more loot rg. Bottom line: Bad rg paper covered with bad rg paper.

Rgs once again seemingly unable to speak the truth or abide by a prior commitment. Macaroni's crew just has longer hair and louder sport coats but they're still thievin' rgs.
6 Lucifer (#) Mar 17th, 2016 - 11:04 am Report abuse
5. Are you trying to tell us the Argys are not forthright and honorable people?
Say it isn't so!
7 Brasileiro (#) Mar 17th, 2016 - 11:48 am Report abuse
Norteamericano is shit!
8 CapiTrollism_is_back!! (#) Mar 17th, 2016 - 12:56 pm Report abuse
Anyone want to take a wild guess which currency is, pound for POUND, the worst performing currency in the WORLD last 5 weeks?

9 dsullivanboston (#) Mar 17th, 2016 - 02:48 pm Report abuse
funny this is the same judge CFK and the midget were claiming were so bias?
10 golfcronie (#) Mar 17th, 2016 - 03:48 pm Report abuse
But it outperforming the Arg $ and we do not have 30-40% inflation year on year
HaHaHa up yours
11 Troy Tempest (#) Mar 17th, 2016 - 04:12 pm Report abuse
@7 Brassiero

“Norteamericano is shit!”


What a statement!!

Imagine the outrage and indignation, cries of discrimination and condescension if one of us were to say

“sudamericanos are shit”.

Brassiere, your prejudices and political self-interest are palpable.
12 Marti Llazo (#) Mar 17th, 2016 - 04:17 pm Report abuse
@10 Annual inflation rate in Argentistan as of February was 32.9% (congressional IPC numbers) and that is just so far this year. The central bank is offering notes at 38 percent effective annual rate. Wheelbarrows, anyone?
13 chronic (#) Mar 17th, 2016 - 05:08 pm Report abuse
Shades of the Bundesbank . . . .
14 Enrique Massot (#) Mar 18th, 2016 - 11:57 pm Report abuse
Macri had said dollars would start pouring as soon as rates were freed; he also expected the large agricultural producers to begin selling their harvest at high speed so dollars would be coming in like crazy. Nothing happened.
Now he and his financial wizards are promising investments will begin rushing in as soon as the vultures are paid. This, of course, won't happen. Macri and friends don't care much. The banks designated to handle the vulture “normalization” operation will make millions in commissions, as they will with any subsequent borrowing.
Meanwhile, over 100,000 public and private sector employees have been laid off, with more to come. (Google: layoffs - Argentina).
Some companies have already been hit by the elimination of duties on mined minerals that has made more profitable to export raw than to process it in the country.
Only a few are experiencing the “Joyful Revolution” promised by Macri.
Only the 1 per cent.
15 Troy Tempest (#) Mar 19th, 2016 - 12:21 am Report abuse

Rather than wish the best for Argentina, you seem determined to be disillusioned and spread your message of failure and disappointment.

If I did not know better, I would say that you want the reforms to fail.

You sound happy.

A bit naive of you to expect Macri to turn the economic tide in a few days, after ten years of decline, theft, and outright arrogant obstinance.
16 chronic (#) Mar 19th, 2016 - 04:07 am Report abuse
Only 100,000 ?

I was hoping for a minimum of 1,ooo,000!

17 Enrique Massot (#) Mar 19th, 2016 - 05:16 am Report abuse
#15 T Tempest
It's not a matter of me feeling disillusioned, or alternatively, happy. We cannot influence what happens; only try to understand it.
The recipes Macri is applying have been tried before--perhaps never so fast and so deep--and ended up in failure.
Then it's not a matter of expecting “Macri to turn the economic tide in a few days.” He is not going to turn any tide at all: he is a tsunami of negative changes that will throw the country into recession, and the first signs are already there but will become painfully clearer some time down the road.
I would be the first to be happy if Macri were to prove me wrong and bring prosperity to the people in Argentina. But then again, Macri wouldn't be himself but someone else.

#16 chronic
Don't worry. Macri is working on that. His goal is 15 per cent unemployment, which will allow to push wages down to the bottom.
18 Troy Tempest (#) Mar 19th, 2016 - 06:20 am Report abuse
@17 Enrique;

The country was already in recession, with growing unemployment, 30%+ Inflation, 27% of the population living in poverty, and a very high violent crime rate - all of which were climbing, ever since CFK took power.
19 Skip (#) Mar 19th, 2016 - 09:14 am Report abuse
CFK creates an economic mess and Macri gets the blame.

20 chronic (#) Mar 19th, 2016 - 09:51 am Report abuse
Cretina didn't spin this web in a vacuum or without the aid of a solid cultural foundation for self absorption and failure.

What do you expect of rgs?

21 Marti Llazo (#) Mar 19th, 2016 - 01:35 pm Report abuse
Survey by Poliarquía Consultores: 69 percent approval of how Macri is managing the government.

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