MercoPress. South Atlantic News Agency

CFK admits having to pay 300% profit on holdouts’ dollars, but never 1.680% as pretended

In an impassionate 26 minute speech the Argentine leader called for support in the battle with holdouts

Argentine President Cristina Fernández rejected on Wednesday the possibility of a new default during the UNASUR-BRICS meeting in Brasilia, highlighting Argentina is going to “keep on paying and honoring its debt,” while asking for support against the “so called vulture funds,” who are “pretending to collapse the Argentine debt restructuring.”

“Argentina will not default its debt. To be in default is to cease payment, and Argentina is able to pay. It will keep on paying and honoring its debt,” the President said.

The president also anticipated that Argentina will not offer holdout better conditions than those awarded to the majority, 93% of bondholders who accepted the massive debt restructuring.

“Vulture funds never lent Argentina a dime, but rather purchased 2008 defaulted bonds and now are after a profit of 1.680%, a bit too much”, said the Argentine leader.

CFK stated it is impossible to pay holdouts what they pretend, as the RUFO clause states the country cannot pay bondholders who did not enter debt restructuring any more than holdings.

“We want to negotiate within the law. We want equal, fair negotiations for the totality of Argentine bondholders. Also keep in mind that if holdouts enter the debt restructuring, they would earn 300% in dollars. They would be making a huge profit” CFK explained.

The Argentine president then blasted economic advisors that recommend paying “vulture funds” the full debt amount, promising “Argentina would be then flooded by dollars”.

“I already hear that argument. It is not realistic. This is not a judiciary problem,” Cristina Fernandez argued. “Holdouts are attacking Argentina so that we go back to the 90’s financial looting.”

“They are threatening to force Chevron out of the Vaca Muerta shale oil field, as they said today in a paid advertisement. They are making a speculative attack to destroy Argentina’s debt restructuring and force us back to endlessly issuing debt,” she concluded.