MercoPress, en Español

Montevideo, August 9th 2022 - 17:45 UTC



Argentina prepared to reopen bonds’ swap under certain conditions

Tuesday, November 27th 2012 - 21:02 UTC
Full article 35 comments
Minister Lorenzino called Judge Griesa’s ruling “contrary to common sense and Argentine Law” Minister Lorenzino called Judge Griesa’s ruling “contrary to common sense and Argentine Law”

Economy Minister Hernan Lorenzino described the appeal presented on Monday by Argentina against the ruling of New York Judge Thomas Griesa as “very forceful”, and pointed out that if the magistrate had proposed to treat hedge funds demands under the terms of the 2010 debt-swap, the Argentine congress might then address the option.

Lorenzino said that he does not rule out a possible third debt exchange for those who did not enter the 2005 and 2010 swaps “if required by the Justice of the United States, but only if it contemplates an offer similar to that of 2010 and if the Argentine Congress passed a law approving it”.

The Argentine congress voted a law which clamped any possibility of further negotiations with those bond holders who did not accept any of the swaps.

Lorenzino added that “the solid presentation Argentina filed on Monday in New York underscored the country's sovereignty to dictate its own rules and from that perspective could make a proposal to those bondholders who did not agree to the exchange terms of 2010 but that would be in line with the regulatory background of our country and a thorough Congressional debate”.

The minister described Judge Griesa’s ruling to pay first the hedge funds as “contrary to common sense and Argentine Law” pointing out that a proposal similar to the 2010 exchange “would be in line with the legal system background of Argentina and congressional sovereignty”.

It is crucial that Judge Griesa’s ruling is ‘suspended’ to that Argentina can comply next December 15 with payments to the restructured bond holders as Argentina has been complying regularly since the swaps were agreed”.

The ruling Argentina is appealing refers to Judge Griesa latest decision indicating that the hedge-funds must be paid first and that Argentina must deposit by December 15 the funds in an escrow account.

Lorenzino insisted on the ‘irrationality’ of pretending the ‘pari passu’ clause is applicable, since this is “the closest thing to an arbitrary and unfair decision”. He also revealed that the Argentine writ requests an ‘urgent’ consideration of the matter so “we expect that in the coming two to three days we have a reply from the Appeals court so that we can address payments as we have been doing”.

Top Comments

Disclaimer & comment rules
  • ProRG_American

    Good News!!

    What Next?
    Judge Greisas Ruling overturned by appeal?
    ARA Libertad is freed from captivity?
    Grain Prices Soar?
    New Major oil discovery in patagonia?
    World Bank says Argentina rduced its poverty by 50%?
    World Bank says Argentine middle class the fastest growing in the region?
    Argentina pays it's cooperative bond holders on time?
    Cristina's chances for reelection suddenly skyrocket?

    HOOOoooooo! Shrugging shoulders......It gives me chiiiils all over my body.

    Nov 27th, 2012 - 09:16 pm 0
  • Xect

    Ah hello my Argentine friend.

    You can certainly live in hope as unlikely as what you suggest maybe. I'd hazard you've got more chance of winning the lottery for 10 weeks straight than all of that coming true.

    Still you've always got your hope lol....

    Nov 27th, 2012 - 09:21 pm 0
  • ProRG_American

    I am not argentine and I don't seem to have you on my list of friends. Am I on yours?
    I suppose that you can add a sizeable oil find in “the Falklands” to my list. LOL

    Nov 27th, 2012 - 09:51 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!