Paul Singer, CEO of hedge fund Elliott Management Corporation and who is litigating Argentina demanding full payment of defaulted bonds described Argentina's government policies as 'horrendous' and stated that 'talking' he could settle the dispute 'in an afternoon'.
During a video interview with the Wall Street Journal at the Davos Economic forum, and asked about the general economic situation in Argentina, Singer used the opportunity to slam the public policies led by President Cristina Fernández.
It looks that what is happening with Argentina is self inflicted or imposed by horrendous government policies in many areas, said Singer. He then alluded to the violent episodes that happened in December, when policemen from several provinces remained in their headquarters and began a strike which was followed by lootings.
“There have been riots by police and lootings by citizens. It’s a sad thing because it’s self imposed by the Government,” expressed Singer.
Taxing labor, dishonoring debts, getting involved in disputes with global corporations and discouraging foreign investors', does not help the economy said Singer who is litigating Argentina over a billion dollars.
It would be great if the current situation is a wakeup call to make government adopt certain correction measures, among which reaching an agreement with creditors”. Meantime Argentina's access to money markets remains closed and has cost the country billions of dollars.
“We are willing for quite a while to sit down with Argentina. We could settle this thing in an afternoon” added Singer that the litigation case does not involve a hedge fund only but thousands of holdouts.
Last Friday, according to Noticias Argentinas news agency, around 20 international investment funds who own about seven billion dollar in bonds of Argentina’ restructured debt maturing from 2014 to 2018, are considering to cede a portion of it back to the hedge funds.
In exchange, according the agreement, the so called ‘Vulture Funds’ who rejected the debt restructuring process in 2005 and 2010 should desist from their demands and enter into the debt swap.