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Holdout funds claim in ads campaign that Argentina is choosing default scenario

Thursday, July 17th 2014 - 05:49 UTC
Full article 5 comments
The American Task Force Argentina has concentrated its fire on Economy minister Kicillof The American Task Force Argentina has concentrated its fire on Economy minister Kicillof
AFTA asks if Argentina is setting the basis for a new default and warns “time is running out” AFTA asks if Argentina is setting the basis for a new default and warns “time is running out”

The American Task Force Argentina (ATFA), the group the government of President Cristina Fernandez has officially accused of being funded by same holdout creditors suing Argentina over its defaulted bonds, has resumed its advertisement campaign against Buenos Aires now saying the Kirchner administration is actually “choosing” a default scenario.

“Is Argentina setting the basis for a new default?” the ATFA wonders in a new ad published Wednesday morning in local newspapers warning “time is running out for Argentina.”

“The country has till the end of this month to reach an agreement with its creditors as part of a settlement process following a ruling by the (New York) justice,” the text reads in tune with last week’s advertisement that also questioned the Argentine position in a legal dispute that has put country’s restructuring of sovereign debt in the international spotlight.

“These creditors have requested to meet Argentine authorities in several opportunities, but they refused to,” the group says adding the federal government has decided instead to attack US courts and creditors. That, according to ATFA is a show of “no serious commitment”.

However the open letter does not mention that Argentina negotiated with 93% of creditors and that the holdouts now suing Argentina refused to enter debt swaps twice (2005 and 2010).

“But what is more worrying is that Economy Minister Axel Kicillof has stated that entering a default would be preferable to reaching an agreement with creditors,” the ad continues saying if Argentina prevents a default scenario “benefits would be huge”.

The Argentine minister who is in Brazil this week to attend the BRICS summit and other parallel meetings, has questioned holdouts (‘vulture funds’) explaining that both creditors and rulings by US Court District Judge Thomas Griesa were pushing Argentina toward what he called the euphemism of a “technical default” as he reaffirmed the country's will and determination to service its debt.

“(Creditors) have publicly and frequently declared they are willing to accept bonds as part of an agreement and that they would negotiate in order to give Argentina more time in return to start a real and concrete process toward an agreement,” ATFA finally says.
 

Top Comments

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  • willi1

    kicillof: pay what you have to and shut your mouth. the world is tired of your bloody arguments.

    Jul 17th, 2014 - 08:35 am 0
  • ChrisR

    The picture of Kickitoff suggests he's on drugs: with TMBOA on his back is anyone surprised?

    No money, so default here we come.

    Jul 17th, 2014 - 11:09 am 0
  • Conqueror

    ”However the open letter does not mention that Argentina negotiated with 93% of creditors and that the holdouts now suing Argentina refused to enter debt swaps twice (2005 and 2010).“

    But argieland didn't ”negotiate”, did it? It issued an ultimatum. Who wrote this article?

    Jul 17th, 2014 - 01:46 pm 0
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