MercoPress. South Atlantic News Agency

Argentine industrial and financial community call for 'dialogue' with holdouts

ABA president Cesario also called for a wide ranging support for government in the negotiations chapter

Argentina's industrial union and bank associations expressed their deep concern regarding Monday's US Supreme Court refusal to take the long standing case with the holdout hedge funds, and all called for a solution appealing to dialogue.

 “The Argentine Industrial Union expresses its concern about the potential effects for the whole of the Argentine economy from the recent decision of the US Supreme Court, referred to the litigation from holdout bond holders”, said the manufacturers union in a release.

UIA then went on to call for “a solution oriented towards development of production, investment and employment”.

The Banks Association of Argentina, which represents foreign banks said that “the situation must be addressed as an opportunity so that Argentine definitively ends, and in the best possible way, the problem with the holdouts, a problem which has negative economic effects currently, and even more significant for the future development of the country”.

“The path to a negotiation, at the corresponding instance, prevails as the attitude to follow so resolve the conflict with the creditors of the case, mainly not to affect the interests of the 92% bond holders who voluntarily accepted the swap”.

But ABA also calls for a wide ranging support for the Argentine government regarding the next step which means “backing from all the political leadership and by the main economic and social actors”. The message is signed by ABA president Claudio Cesario.

“The president of the nation has repeatedly expressed the willingness to honor foreign commitments and that must be the support point for a negotiation” so that “Argentina can finally return to the international trade and financial markets”, insisted ABA.

Finally the head of the Latin American Federation of Banks, Jorge Brito said that the decision from the US Supreme Court “does not contribute solutions but on the contrary aggravates the problems”.

“This decision not only harms the Argentine debt scenario, but also sets a bad record for future consolidations of sovereign debts that might be needed by other countries”, and this explains the support for Argentina from the US government, IMF and the French government among others.

“Argentina must continue along the path of negotiations which undoubtedly now has become more difficult. Our country must find a creative exit to that respect and we commit our efforts to collaborate with national authorities to achieve it”, concludes the statement.