MercoPress. South Atlantic News Agency
IDSA decides that Argentina “failed to pay” and thus declares it has defaulted
The International Swaps and Derivatives Association (ISDA) on Friday declared Argentina in default, which could trigger payments worth up to one billion dollars on credit default swaps. Read full article
Comments
Disclaimer & comment rulesIt would have been strange had ISDA not reached this decision. Clearly, ISDA understands the meaning of the word “pay”. Unlike Kirchner, Kicillof and co.
Aug 02nd, 2014 - 12:20 pm - Link - Report abuse 0The nasty old world is closing in!
My former employer requested this. I had to smile.
Aug 02nd, 2014 - 03:57 pm - Link - Report abuse 0Respekt meine Lieben! Grosse Anerkennung für euer geschicktes & tolles maneuver.
Argentina another unattractive event to be added to your national list of shame: “failure to pay”
Yep. Here comes stagflation. There will riots in the streets soon. September, I reckon.
Aug 02nd, 2014 - 04:38 pm - Link - Report abuse 0Quite right!
Aug 02nd, 2014 - 05:50 pm - Link - Report abuse 0defaulted???????
Aug 02nd, 2014 - 05:54 pm - Link - Report abuse 0so the impossible has become a reality for the masses,
yet oddly, the government denies any problems..lolol
Adjudged a default only by the 6,960,000,000 or so people living outside of RG.
Aug 02nd, 2014 - 06:06 pm - Link - Report abuse 0The bullshit regime continues to deny that they are in default.
Aug 02nd, 2014 - 10:48 pm - Link - Report abuse 0Welcome to Narnia!
”The International Swaps and Derivatives Association (ISDA) on Friday declared Argentina in default, which could trigger payments worth up to one billion dollars on credit default swaps”
Aug 03rd, 2014 - 12:27 am - Link - Report abuse 0Most MercoPress commentators will be shocked to learn that Argentina will conduct an investigation into whether the vultures obtained huge benefits by not reaching an agreement with the Republic on or before July 30. No way Paul Singer wouldn't ever do that!
This commentor is not shocked at all.
Aug 03rd, 2014 - 01:09 am - Link - Report abuse 0a) so what if the Argentines conduct an 'investigation' as the Law of New York State, which they signed upto for the contract, will still stand and no other country will disagree for fear of jeopardiseing their own companies contracts.
b) obtaining huge benefits is not illegal, or wrong, it is simply very good business. Something the Arg Gov could do with a harsh lesson in!
haha!
It would be better if the Argie government had an investigation as where all the money went that they borrowed.
Aug 03rd, 2014 - 12:02 pm - Link - Report abuse 0Just like the perfect little Argentine battler!!“ I hate all that the American justice system stands for, Griesa is stupid, Pollack is biased, SCOTUS is corrupt, the financial sector is money hungry, yet I want the SEC to investigate what I believe could be a legitimate excuse why we are in default. If I don't get the answer I'm looking for here then the SEC is corrupt as well.”
Aug 03rd, 2014 - 12:37 pm - Link - Report abuse 09&10
Aug 03rd, 2014 - 01:32 pm - Link - Report abuse 0I agree with you both. They seem to deliberately 'not get it'.
Failure to Pay. No payment = default.
Griesa failures to pay. The money is in the bank.
Aug 04th, 2014 - 12:06 am - Link - Report abuse 0Argentina did pay. Judge Griesa blocked the payment from reaching its destination. That's highway robbery as far as I understand.
Aug 04th, 2014 - 06:57 am - Link - Report abuse 0The money was in the BoNY in time for June's end deadline. Griesa blocked the exchange bondholders (92.4 per cent of Argentina's creditors) from getting what's rightfully theirs.
The losses just in terms of interests must be huge by now. I hope Griesa has deep pockets when civil lawsuits for the losses are done. His Montana ranch will be gone. Let's hope his friend Paul helps him.
14 ER
Aug 04th, 2014 - 07:37 am - Link - Report abuse 0Stop repeating your government's propaganda; you know it's only half true. The money deposited in that New York bank was only sufficient to cover the 93% and not the holdouts. You know that and you know that's the issue all the court time was over. Argentina lost the case and has to pay everyone according to their deals.
They didn't pay everyone what they were legally owed. Did they.
Argentina is in default. It makes no difference whether they accept that or not.
The money is for 93% of the people that accorded and negotiated with Arg to be paid. They should be paid.
Aug 04th, 2014 - 11:32 am - Link - Report abuse 0Those speculatives, that dont want to negotiate, its another matter.
16 Malen
Aug 04th, 2014 - 03:31 pm - Link - Report abuse 0Ah but that's the problem isn't it. It's the few remaining percent that the court case was over and Argentina lost the court case.
PAY.
Argentine Government Deadbeats. Who will lend to them now?
Aug 04th, 2014 - 10:05 pm - Link - Report abuse 0What a train wreck this will be.
It is over malen. Emigrate!
#15 Jay Bee:
Aug 04th, 2014 - 10:30 pm - Link - Report abuse 0You don't get it.
Argentina cannot and won't pay the vultures no matter what Judge Griesa says.
Why?
Because in his haste to help the vultures and his superficial understanding of a complex issue, Griesa has made poor decisions that cannot be obeyed. Here's why.
During the 2005 and 2010 agreements with 92.4 per cent of creditors, a Right Upon Future Offers (RUFO) clause included in exchange bonds gave bondholders right to claim the most favourable treatment.
As a result, if the vultures get 100 per cent of their bonds' face value, the exchange bonds valued 30 cents on the dollar would be worth 100 per cent again. Argentina could then become liable for up to $500 billion, heading straight to a real default.
That is why Argentina asked Griesa for a stay until Dec. 31 when the RUFO clause expires--the judge flatly denied it.
Of course, the vultures and Griesa couldn't care less about Argentina's RUFO risks.
Conversely, the Argentine government is obligated to act on behalf of the country and its people. And a majority (54 per cent) of the Argentine people understand their government is just doing this, and supports Cristina Fernandez de Kirchner on her consistent position facing the vultures. I hope you understand that the Argentina people are just like everybody else: they want to remain alive to avoid being eaten by predatory birds.
19 EM
Aug 05th, 2014 - 06:35 am - Link - Report abuse 0I do get it and I do understand that the consequences of the ruling on the people of Argentina would be disastrous if you have to pay. But do you understand that the total amount of liability you quoted above is actually the amount of money that Argentina contractually agreed to pay when it sold those bonds in the first place? Do you understand that your K Government has let you down badly and wasted and stolen much of that money itself? Just think about all of the money it has spent on its ridiculous cause of getting its hands on the Falkland Islands. All for no result and all using money, that effectively, was not yours to use.
If Argentina is allowed off the hook on this it cannot be without conditions. You can't let anyone, including a sovereign State, act so irresponsibly but then carry on like nothing has happened and laugh in the faces of others who try much harder to comply with the rules. There'd have to be some trade-offs.
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