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Montevideo, July 22nd 2019 - 07:42 UTC

 

 

Capital Markets accept review of sovereign default and making terms extensive to all bondholders

Saturday, August 30th 2014 - 11:06 UTC
Full article 24 comments

The International Capital Market Association (ICMA) published on Friday the revised framework that allows a majority of investors holding sovereign bonds that default to make changes to the terms, such as extending maturities or reducing the principal. Read full article

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  • ilsen

    Am I right in think that this will only apply to future bond issues, and only if the Gov.s issuing future bonds agree?
    I wonder if Argentina will try to argue to somehow 'retro-fit' this?

    Aug 30th, 2014 - 11:18 am - Link - Report abuse 0
  • bushpilot

    So it will be easier for a government to not pay back what they borrowed and harder for a bond holder to insist they are paid back what was promised.

    Instead of facilitating a country in defaulting, why doesn't the IMCA instead develop a framework that “facilitates” a country to use borrowed money wisely and then pay that borrowed money back?

    Aug 30th, 2014 - 11:20 am - Link - Report abuse 0
  • ChrisR

    Something else will occur in the future to allow scofflaws like TDC to continue to rip-off those stupid enough to trust them.

    Aug 30th, 2014 - 11:24 am - Link - Report abuse 0
  • reality check

    “ As the market participants cannot force governments to apply them in practice.”

    I'll have a tenner on the Argentine Government overlooking that part and hailing this as an appeal for mandatory reform.

    Aug 30th, 2014 - 11:25 am - Link - Report abuse 0
  • ilsen

    Surely is should be harder for countries with dodgy credit histories issue on the international bond markets, thus protecting investors?

    Aug 30th, 2014 - 11:29 am - Link - Report abuse 0
  • paulcedron

    news from yesterday...
    just 24 hours late.
    it seems the 4th class newspaper is improving

    Aug 30th, 2014 - 01:32 pm - Link - Report abuse 0
  • gordo1

    @6 Mamarracho # 1

    I don't see your point. This is an English language newspaper and presents news in that language as promptly as it is able. Your comments are nonsense and uncalled for.

    Aug 30th, 2014 - 01:54 pm - Link - Report abuse 0
  • ilsen

    Haha! I posted my @1 before reading the most recent Griesa/UN article, and hey, that is exactly what those snivelling scofflaws are attempting.
    Trying it on as usual. Anything to wriggle out of their responsibilities.

    As predictable as a dog licking its own arse. You know it will happen sooner or later, and never nice to see.

    Aug 30th, 2014 - 01:55 pm - Link - Report abuse 0
  • Holdout.from.Germany

    After Argentina’s 2001 Default most of the newly emitted bonds imply the Collective Action Clause (CAC) A collective Action clause (CAC) allows a supermajority of bondholders (75%) to agree to a debt restructuring that is legally binding on all holders of the bond, including those who vote against the restructuring.

    BUT, This CAC is NOT implied in Argentina’s repudiated old bonds!
    Accordingly, Argentina MUST fulfill the bond contracts and repay the debt to the holdouts!

    Aug 30th, 2014 - 02:41 pm - Link - Report abuse 0
  • paulcedron

    Comment removed by the editor.

    Aug 30th, 2014 - 03:39 pm - Link - Report abuse 0
  • ilsen

    1. Mercopress is a news-agregator, very different from Reuters, the BBC etc. It does not have reporters in every country filing 'copy' on a daily basis.
    2. If it is a '4th class paper ' why does Paulina Conniption read it? I expect paulconejo just turns up to snipe at the British he secretly fantasizes about.

    Back to the issue at hand, this is far too late for Argentina to take advantage of, but it looks they are trying anyway. What a waste of time and resources. They should concentrate on fulfilling their obligations instead.

    Aug 30th, 2014 - 03:53 pm - Link - Report abuse 0
  • chronic

    “ICMA said revisions to so-called collective action clauses, CAC, and a new standard pari passu clause, which refers to all creditors being treated the same, would provide a practical solution to the problem of blocking minorities.”

    This is actually a good clause as it clearly expresses the intent of the issuer to reserve the option to easily navigate through the repudiation the bond in the future. So, those now buying the bond will factor this implicit higher risk into the transaction and require a significantly higher yield and cost to the debtor nation.

    New York law and other bonds of their quality will continue to predominate as they will allow the responsible issuer to borrow at minimal costs. And the difference in yields between the NY law and emergent/regressing bonds will continue to spread.

    Aug 30th, 2014 - 04:08 pm - Link - Report abuse 0
  • Conqueror

    Only a framework. Needs some legislation. Retrospective legislation is not legal. Anybody told this bunch of self-indulgent nutjobs that they have no authority?

    Aug 30th, 2014 - 06:34 pm - Link - Report abuse 0
  • Voice

    Either way it looks like the tide is turning against the Vultures....and financial markets opinion appears to be favouring the Argentine cause.
    Is it slipping away for Singer & Co....
    I think it is....who would have predicted that....well not YB that's for sure....
    ...for all you Vulture supporters and sycophants....and you all know who you are....
    ......Ha bloody ha....

    Aug 30th, 2014 - 06:45 pm - Link - Report abuse 0
  • Captain Poppy

    It should but it will change course like an air craft carrier. In the meantime.....Argentina owes the holdouts.......they are doing nothing illegal. I would support most anyone the remove the scumbag kirchner.
    Scarborough beach is lovely today......just lovely.

    Aug 30th, 2014 - 07:06 pm - Link - Report abuse 0
  • ilsen

    As Conquueror rightly says “Retrospective legislation is not legal.”
    “opinion” is just that, somebody's point of view, financial markets or otherwise it is not law. The Argentine Gov has missed the boat yet again.

    Aug 30th, 2014 - 07:15 pm - Link - Report abuse 0
  • Voice

    Hey Pops...I've been to the real one.....
    http://www.scarboroughyorkshire.co.uk/gallery/12.html

    Aug 30th, 2014 - 07:55 pm - Link - Report abuse 0
  • Captain Poppy

    Yes of course here it is a fake. I will take Newport area anyday.

    Aug 30th, 2014 - 09:18 pm - Link - Report abuse 0
  • yankeeboy

    I will second that Cap. The beach is lovely today.

    Aug 31st, 2014 - 04:38 pm - Link - Report abuse 0
  • Doggy Rap

    Ain't Paulito-Birdbrain cute when she writes

    “it seems the 4th class newspaper is improving”?

    Who does Paulito-Birdbrain read a 4th class newspaper?

    Aug 31st, 2014 - 10:50 pm - Link - Report abuse 0
  • Don Alberto

    Germany’s Finance Minister Wolfgang Schäuble said: “In Argentina the holdouts are insulted and called “vultures”, “but Argentina caused the problem, not the funds”

    “Argentina has lived for decades beyond its means, it does not pay its debts ...” he added. “Problems arise when you spend more than you earn,” Schäuble stated.
    - - -
    Comparing the financial states of Germany and Argentina, it is clear, that the latter knows best. Germany has an inflation of lousy 1.8% while the much more successful Argentina can show an impressive 40%.
    /sarcasm

    Aug 31st, 2014 - 10:58 pm - Link - Report abuse 0
  • gordo1

    I wonder how mamarracho No.1 counters this?

    Sep 01st, 2014 - 01:32 pm - Link - Report abuse 0
  • Don Alberto

    Ain't it cute?

    President Kirchner for her part is happy to have a New York billionaire be the focal point of her countrymen’s ire while she lives her Marie Antionette-lifestyle, taking a helicopter for her 9-mile commute to work and jetting around on her Air Force One equivalent known as Tango-One.

    http://nypost.com/2014/08/31/argentina-president-uses-villian-paul-singer/

    Sep 01st, 2014 - 05:14 pm - Link - Report abuse 0
  • ilsen

    @21 & 23
    Very good comments!

    Sep 03rd, 2014 - 11:14 am - Link - Report abuse 0

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