MercoPress. South Atlantic News Agency

Argentina confirmed Monday 7 July negotiations with hedge funds as instructed by Griesa

Minister Kicillof is expected to head the delegation that will first meet with mediator Pollack named by Judge Griesa (Pic AP)

Argentina confirmed that next Monday, 7 July it will hold a meeting with “Judge Thomas Griesa delegate, Daniel Pollack”, in the framework of the current litigation with speculative funds, according to a Monday release from the Ministry of Economy in Buenos Aires.

 However it is not clear who will be travelling to New York to hold talks with the holdout hedge funds as instructed by Judge Griesa but “a delegation has been named to meet on 7 July with Pollack” and there is speculation that it will be headed by Minister Axel Kicillof.

Kicillof together with cabinet chief Jorge Capitanich and the Presidency Technical and Legal Secretary, Carlos Zanini make up the task force dealing with the holdouts and Judge Griesa, closely monitored and under constant consultation with President Cristina Fernandez.

As of this Monday the countdown of a month grace period has started to tick since this Monday, 30 June was supposed to pay a coupon from the restructured bonds.

“In this manner, Argentina reiterates its intention to negotiate in fair, equitable and legal conditions that take into account the interests of 100 percent of creditors, which clearly implies that restructured bondholders be permitted to receive payment for current maturities,” a statement from the Ministry explained Monday evening.

Argentina has said that negotiations must be held in “fair, equitable and legal conditions that contemplate the 100% of creditors, which means paying holders of restructured bonds on time and according to the timetable”.

Apparently last Friday during the audience called by Judge Griesa, the US magistrate pointed out that “if you want to negotiate, there must be a way planned to keep the status quo and avoid default on 30 July, nevertheless the situation will remain, and excuse me for going over this time after time, in status quo”.

The Ministry release also indicated that Pollack suggested two dates for a meeting with the Argentine delegation, “July third or the following week, beginning 7 July”, the date which was finally chosen by the Argentine government since next Thursday Kicillof will be making a speech on the restructured sovereign debt issue before the Organization of American States.

Kicillof is scheduled to leave Wednesday and spend no more than a day and a half in Washington.

Last Friday Judge Griesa ordered a New York bank to return to Argentina the money deposited which was sufficient to pay the restructured bonds coupon, and insisted that Argentina must sit and negotiate.

The 590 million dollars deposit ignored the 1.3bn plus interests that the holdouts are demanding and for which they have a firm ruling, pari-passu from Griesa.