New York district judge Thomas Griesa has asked Argentina to show cause and explain why the country should not be declared in contempt, following its decision not to pay holdout investors full amount for their defaulted bonds as the judge’s ruling ordered on August 8.
The informal rate for the US dollar in Argentina kept climbing on Wednesday and after brushing 16 Pesos, finally closed 53 cents higher at 15.95 Pesos, while the gap with the formal dollar soared to 89%. Distrust with government policy, plain speculation and hikes in the stock exchange rate were blamed for the situation.
Argentine Cabinet Chief Jorge Capitanich on Wednesday lashed out at Germany's finance minister, denouncing Berlin's hostile attitude toward Argentina's debt restructuring effort. He added that Germany had always had a hostile attitude toward Argentina from an economic and financial point of view.
President Cristina Fernández addressing on Wednesday the United Nations General Assembly said Argentina, in the context of a complex world situation, has become a triple leading case, (vulture funds, terrorism) and one referred to 'the use of force and territorial integrity', more specifically the pending dispute with the United Kingdom over the Falklands/Malvinas.
Credit ratings agency Moody's Investors Service has warned about the Argentine situation which can become “harmful” for Latin America, stating that the country's economy is in “decline” and qualifying current policies as “highly risky.”
A group of Argentine lawmakers will be travelling next month to the UK, on an official visit to meet with British officials and members of Parliament, a trip which has been described as 'historic' because it is a 'first time' since the end of the South Atlantic conflict such an invitation is extended.
What happened in the Vatican last Saturday when Pope Francis received Argentine president Cristina Fernandez for lunch and a long private talk. According to the visitor the Holy father was concerned about debt and vulture funds harassment and contrary to news from Buenos Aires previous to the trip, the Pope was not at all concerned about governance in Argentina or the democratic process.
The beginning of a turbulent week for Argentina's money exchange market with the informal or 'blue' dollar climbing to 15,15 Argentine Pesos, while the official rate was up one cent to 8,45 Pesos in Buenos Aires banks and foreign exchange offices.
British Airways will be eliminating two direct flights between Buenos Aires and London beginning 31 March 2015, meaning the weekly schedule will be cut from seven to five flights, mainly because of a drop in the number of passengers.
Argentina's Economy Minister Axel Kicillof responded to Citibank’s lawyer Karen Wagner remarks that the bank had “a gun pointed to its head” which would “probably go off” if the US Judiciary did not allow payment of funds blocked by US Judge Thomas Griesa’s ruling.