MercoPress. South Atlantic News Agency

Argentina plans to reopen debt swap program and will request to meet Griesa

Minister Kicillof revealed the Argentine government's strategy at a press conference and plans to meet with Congress leaders

Economy Minister Axel Kicillof has announced that the government plans to reopen the debt swap program in the hope of renegotiating bonds held by hedge funds, after the US Supreme Court declined to take Argentina's case against the so-called 'vulture funds'.

 Kicillof spoke on Tuesday in a press conference to communicate the Argentine government's position on Monday's ruling in the US Supreme Court. The holdout hedge funds or 'vulture funds' are investors who refused to enter previous debt swaps, and are using the New York court system to demand full payment of bonds acquired after the 2001 default.

Kicillof said that the Cristina Fernández administration would take the necessary steps for “a new debt swap under Argentine legislation”, and anticipated Argentina's lawyers in New York will request an audience from Judge Thomas Griesa to consider the latest situation.

The minister further revealed that on Wednesday morning he would meet with the president of the Senate and Congress party blocs, as well as provincial governors, in order to “let them know what our point of view, actions and alternatives are.”

Kicillof vowed that Argentina would take every possible action in order to keep up payments on foreign debt restructured in 2005 and 2010, while criticizing those who, in the politician's view, were trying to destroy existing agreements with creditors.

For Kicillof, the Supreme Court decision is in line with those “who want to destroy the restructuring of Argentine debt, as he promised to keep up commitments to investors. We will do whatever it takes to pay our restructured debt,” he underlined.

“That restructuring that is now in danger is one of the central pillars of the growth our country has enjoyed in recent years” he underlined.

“Nevertheless, keep calm, all has been considered and studied in depth. We have taken all the necessary measures to ensure that the financial situation of Argentina is not at risk by small groups that only pretend to make a quick profit, no matter the damage they cause”.

“We are going to keep to the principles that guided the restructuring of the country's debt; we will not reach a deal under any condition or circumstance”.