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European clearing houses close trading bridges on Argentine law bonds

Friday, March 27th 2015 - 08:46 UTC
Full article 33 comments

Clearing houses Euroclear and Clearstream have closed trading bridges on some 9.4 billion of Argentine bonds issued under the country's law. The action will prevent Euroclear customers from settling their trades with Clearstream clients and vice versa, but will not affect trading between customers belonging to the same clearing company, the same source said. Read full article

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  • golfcronie

    The noose is tightening, pay your debts.

    Mar 27th, 2015 - 10:53 am - Link - Report abuse 0
  • yankeeboy

    At some point there will be an acceleration.
    I wonder what's taking so long?

    Mar 27th, 2015 - 11:25 am - Link - Report abuse 0
  • Briton

    No doubt she will blame us.

    Mar 27th, 2015 - 01:42 pm - Link - Report abuse 0
  • Enrique Massot

    #1 golfcronie
    Just to be sure: Are you advocating that Argentina pay $1.6 billion to a group of financiers who bought bonds for pennies on the dollar with the intention of suing and got help from one court to re-value those bonds to 100 per cent of their face value?
    Do you generally approve that financial institutions purchase bonds worth pennies from countries in dire financial circumstances with the intention of obtaining fat profits later on--with help from the courts?
    And do you approve that, in order to force Argentina to pay, creditors representing 93 per cent of Argentina's foreign debt be blocked from receiving their timely debt servicing payments?

    Mar 27th, 2015 - 03:15 pm - Link - Report abuse 0
  • Moderator

    I told you before Enrique, I dont understand why you're still bothering.

    Mar 27th, 2015 - 03:40 pm - Link - Report abuse 0
  • golfcronie

    Yes to all of the above
    Argentina borrowed money on a lie. The Financiers are onl;y doing what financiers do. If you borrow money and do not pay it back what do you expect. You lend me US$ 1,000,000 and I will give you US$ 300,000 back , now tell me that is not fair.
    Argentina stole US$ 70 billion from private investors and NML ONLY want US$1.6 billion
    Just pay them and move on.

    Mar 27th, 2015 - 03:43 pm - Link - Report abuse 0
  • yankeeboy

    4. Everyone who believes in the rule of law thinks that Reekie.
    Apparently you don't believe in the rule of law.
    You are an embarrassment to Canada why don't you move back to the h*llhole you spawned from? They don't believe in following the rules or honoring contracts just like you.

    Mar 27th, 2015 - 03:43 pm - Link - Report abuse 0
  • golfcronie

    Are you there Enrique?

    Mar 27th, 2015 - 03:55 pm - Link - Report abuse 0
  • yankeeboy

    Nah he's like a stupid mole popping his head up spouting nonsense and then popping up on another thread with the same nonsense.

    I do like playing whack a mole though

    Mar 27th, 2015 - 04:01 pm - Link - Report abuse 0
  • golfcronie

    @9
    Do you think that the Argies are born stupid or are they indoctinated or do they act stupid to get sympathy? Probably all three.
    Argentina stole US$ 70 billion and Enrique says it OK, A cunch of bunts the lot of them.

    Mar 27th, 2015 - 04:45 pm - Link - Report abuse 0
  • HansNiesund

    @4

    ”Do you generally approve that financial institutions purchase bonds worth pennies from countries in dire financial circumstances with the intention of obtaining fat profits later on--with help from the courts?'

    I think one has to distinguish between countries that are genuinely unable to honour their agreements, and countries that enter into agreements under false pretenses, that could actually honour the agreements they've entered into, but prefer to spend their money on Peronist vanity projects instead, and that have pulled the same trick repeatedly down the years.

    Mar 27th, 2015 - 05:39 pm - Link - Report abuse 0
  • Tik Tok

    Good article here

    http://blogs.ft.com/beyond-brics/2015/03/27/guest-post-argentina-is-in-checkmate-and-must-negotiate-a-way-out/

    Mar 27th, 2015 - 05:56 pm - Link - Report abuse 0
  • Conqueror

    @4. Listen up, Mastoid. Here's the way it works. Start from the top. Let's say argieland borrowed US$100 billion. Shouldn't it have expected to repay US$100 billion PLUS dividends, interest and so forth. Let's call it US$105 billion. 2005 and 2010 it went for 'restructuring'. The norm in such situations is that the issuer negotiates with bondholders to determine a 'fair' amendment. But there was no 'negotiation', was there? Possibly because argieland might have had to produce accurate economic data. Instead, argieland told bondholders 'We'll pay 30 cents per dollar of the value of your bonds. Take it or leave it”. Do you approve? Are you as bent as the Kirchners? So, 10 years or more in court. Case being dealt with in the jurisdiction that argieland chose. Argieland voluntarily gave up its 'sovereign rights'. Because nobody would have bought the 'bent' bonds otherwise. Argieland deliberately STOLE from how many small investors around the world. And committed deliberate FRAUD as well. Let's turn to Mr Singer. How much did he pay for the bonds he bought. One thing is certain. He didn't buy them for what you call 'pennies on the dollar'. Bondholders could have got 30 'pennies on the dollar' from argieland. Here's logic. He paid more. Quite possibly bondholders might have worked out their possible return in terms of dividends etc. from argieland. How about 50 cents on the dollar? Now, not unreasonably, he wants US$1.33 billion plus interest. Considering that argieland STOLE/DEFRAUDED around US$70 billion, it would be getting off light. Worth bearing in mind that Mr Singer GIVES much to charities. And how much does the argie government dig into its own pockets and purses and give to charity? Strangely, what they 'give' is always taxpayers' money. Pay any taxes in argieland, do you? Where's your bank account? Your 'profile' elsewhere doesn't mention anything a normal person would call 'a job'. Independently wealthy? Kirchner money?

    Mar 27th, 2015 - 06:29 pm - Link - Report abuse 0
  • Briton

    Agreed,
    most other countries would have been shamed into paying,

    but CFK has no shame.

    Mar 27th, 2015 - 07:41 pm - Link - Report abuse 0
  • Enrique Massot

    #13 Conqueror
    Argentina stole? Nonsense.
    Let's see. Argentina defaulted in 2001. It was not a joy ride. Over half of Argentines were poor.
    President Nestor Kirchner, elected in 2003, obtained debt restructuring agreements with a 70 per cent haircut in 2005 and 2010. That included 92 per cent of the creditors. Keep in mind that the arrangement was one of mutual interest and allowed creditors to get something back as opposed to getting nothing. Can you remember? The country was in default. Not-paying-anything.
    The remaining 7 per cent--the holdouts--did not accept the haircut. Part of those, Paul Singer's NML Capital and Aurelius Capital Management launched hundreds of lawsuits around the world, seeking to seize Argentine assets.
    Only a judge in Ghana and then NY Justice Thomas Griesa, who made a very capricious interpretation of the pari passu clause in the bonds, gave Singer what he wanted.
    Any idea of other Mr. Singer's feats depriving other impoverished countries of their scarce money resources? I can list them for you.
    Trying to portrait Mr. Singer, who “gives much to charities” (including the Republican Party) as a victim is beyond hypocrisy, unless you are a paid lobbyist.

    Mar 27th, 2015 - 08:06 pm - Link - Report abuse 0
  • Vestige

    Just a matter of time til the trading takes place outside of any US jurisdiction, someone with no US leverage against them will step up.

    Then its

    .......... stop

    .......... hammer time.

    Mar 27th, 2015 - 09:02 pm - Link - Report abuse 0
  • yankeeboy

    16. Wanna bet $350 pesos?

    Bahahahaha

    Keep dreamin'

    Mar 27th, 2015 - 09:21 pm - Link - Report abuse 0
  • Vestige

    is that a nervous laugh.

    nothing to be nervous of, information is notoriously difficult to transmit.
    and the banking industry has a good reputation for moral legal straightforward dealing.

    Mar 27th, 2015 - 09:25 pm - Link - Report abuse 0
  • yankeeboy

    Nope I was laughing at you Sistah.

    BTW did one of you take the time and diagram out which one posts to what article etc?
    I'd really like to see the logic in that
    I am sure it fascinating and frightening

    Mar 27th, 2015 - 09:31 pm - Link - Report abuse 0
  • Holdout.from.Germany

    Most of the 7% Holdouts are “before default buyer”, who have bought their bonds at an average of 100% or even higher.

    And as NLM also quite often publicly said, they have bought many of their papers also before Default, at a price of 100% and higher.

    But anyway. ARGENTINA RECEIVED 100%, AND SO IT SHOULD REPAY TO THE HOLDOUTS 100% + INTEREST, AS DEFINED IN THE BOND CONTRACTS.

    Mar 27th, 2015 - 09:39 pm - Link - Report abuse 0
  • yankeeboy

    Principal, Interest, Penalties & Legal fees.
    Will be paid
    Probably by the next sucker to run the corrupted h*llhole.

    Mar 27th, 2015 - 09:40 pm - Link - Report abuse 0
  • HansNiesund

    @15

    ”Trying to portrait Mr. Singer, who “gives much to charities” (including the Republican Party) as a victim is beyond hypocrisy, unless you are a paid lobbyist.”

    It's almost as bad as Argentina trying to pass itself off as a victim in the same sense as e.g the Democratic Republic of the Congo. But not quite so demeaning.

    Mar 27th, 2015 - 10:44 pm - Link - Report abuse 0
  • Vestige

    19 - it was all NY this NY that at the beginning, now we're talking about Belgium. How'd that happen.

    Wherever next.

    Mar 28th, 2015 - 04:21 am - Link - Report abuse 0
  • Tik Tok

    #15 Henrique
    Responsibility for the start of this whole situation begins with Argentina Government - period. Argentina effectively stole, incompetent governments shall not get off the hook for their mismanagement. Blame them. Their actions robbed their lenders, this cannot be allowed to occur, otherwise this will happen again and again. Borrowing money must mean you have to pay it back (even restructured debt should be a fair process). Argie Govt are extremely pig headed, they must learn the hard way.

    Mar 28th, 2015 - 06:14 am - Link - Report abuse 0
  • golfcronie

    @15
    Don't play the victim role. Argentina was skint and needed money so decided to go to the markets to BORROW MONEY WITH INTEREST OUTSIDE ARGENTINA AND GAVE UP SOVEREIGNTY TO GET IT .( Because you knew that you would not be able to borrow money WITHOUT GIVING UP SOVEREIGNTY) You effectively STOLE IT because you had NO INTENTION of PAYING IT BACK WITH INTEREST. The holdouts bought debt as you would if you were in a similar position. Incidently where did the US$ 100 billion go?

    Mar 28th, 2015 - 08:16 am - Link - Report abuse 0
  • ilsen

    Let's compare Argentina with South Korea in 1998, (as a discussion of social responsibilty and culural attitudes to debt)...

    “South Korea has exported the first shipment of 300 kilograms of gold collected in a public campaign to help the country out of its economic crisis. The nationwide campaign - led by large business groups including Daewoo, Samsung and Hyundai - began on January 5, and involved ordinary Koreans donating personal gold treasures, which have been melted down into ingots ready for sale on the international markets.
    [..] the phenomenon of public self-sacrifice to save an economy in trouble:
    [...]
    It's an extraordinary sight: South Koreans queuing for hours to donate their best-loved treasures in a gesture of support for their beleaguered economy.
    Housewives gave up their wedding rings; athletes donated medals and trophies; many gave away gold ”luck“ keys, a traditional present on the opening of a new business or a 60th birthday.
    [...]
    But perhaps the most extraordinary aspect of the campaign is not the sums involved, but the willingness of the Korean people to make personal sacrifices to help save their economy. The managing director of the IMF, Michel Camdessus, who has just completed a visit to Seoul, was clearly moved by the campaign, calling it ”admirable“.

    There have been other indications that Koreans are willing to work together to face their economic difficulties: Korea's traditionally militant labour unions have announced that they are willing to join a consultative body which is being set up to discuss the possibility of job losses alongside employers and politicians. ”
    full story here;
    http://news.bbc.co.uk/1/hi/world/analysis/47496.stm

    Honourable people, those Koreans.

    Now let us compare the two economies, and general 'world-standing' ... 17 years later...

    oh, hang-on, I guess you know that part already...

    Mar 28th, 2015 - 12:44 pm - Link - Report abuse 0
  • Conqueror

    @15. Excuse me. “Over half of Argentines were poor.” So what? Here's a tip. When you're in a hole, stop digging. The so-called 'poverty' of argies is supposed to excuse theft? Of course, argieland stole. It never had any intention of repaying what it 'borrowed'. Everyone knows that argie thieving is their way of life. Don't they call it 'viveza criolla'? Ignore the 'rules'. Lack of responsibility. No consideration for others. Lack of respect. Political corruption. Lack of morality. Always someone else's fault.
    I notice that you say that Kirchner (DEAD) 'obtained' agreements. Hitler also 'obtained' agreements. Don't get me wrong. I AM comparing Kirchner (DEAD) to Hitler. 'Not paying anything' you say. But Kirchner (DEAD) was dealing with 'little' people. People who couldn't afford to take on the argie criminal conspiracy because their money had already been stolen. If YOU remember, even Italy told argieland it was out of order and 'urged' honesty. Too late, Kirchner (DEAD) had already stolen US$1 million from the province of Santa Cruz. He wanted more.
    Keep your accusations to what you can research and evidence. How come Kirchner (sick) now has US$16 million for which there is no credible explanation. How about the bags and suitcases full of money loaded aboard Tango 01?
    @23. Oh, do please show us the reference to Belgium.
    @15. Of course there's little point in 'talking' to you. Shall I remind you of the questions at the end that you didn't bother to answer? 'Pay any taxes in argieland, do you? Where's your bank account? Your 'profile' elsewhere doesn't mention anything a normal person would call 'a job'. Independently wealthy? Kirchner money?' Why do so many argies live elsewhere than in their wondrous, impressive, progressive, bountiful, magical 'country'? Is it because it is, in truth, a quasi-fascist state? The 'education' system. The propaganda everywhere. The controlled media. The hours-long 'presidential' broadcasts. Subliminal lies.

    Mar 28th, 2015 - 04:01 pm - Link - Report abuse 0
  • Enrique Massot

    27 Conqueror (of what?)
    “@15. Excuse me. “Over half of Argentines were poor.” So what? Here's a tip. When you're in a hole, stop digging.”
    Well Conqueror, I have news for you. Since Nestor Kirchner took the presidency in 2003, that's exactly what Argentina has been doing. Without access to the foreign markets, the country experienced a decade of unprecedented growth.
    Well within what Nestor Kirchner told the creditors in 2005 and 2010: “let our country grow and we will pay.”
    As many as 93 per cent of the creditors agreed to the restructuring in recognizance of the shared responsibility of lenders who provided money to irresponsible administrations that had liberally borrowed against the national interest.
    Since then, Argentina has serviced its restructured debt. You may still be bitter but that is behind us now.
    It remained the seven per cent of creditors--the holdouts. They bet they would be able to recover 100 per cent of their bonds' face value. Of those, the vultures headed by Paul Singer's NML Capital and Aurelius Capital Management aggressively pursued Argentina launching hundreds of lawsuits in courts all over the world until they got help from NY Judge Thomas Griesa.
    Again: the country would be mocking 93 per cent of its creditors if it yielded to Griesa-Singer's blackmailing.
    That is why CFK has chosen the unprecedented path of being in contempt of a NY court rather than acting contemptuously towards those who elected her and the large majority of its creditors.
    Vultures back off.

    Mar 29th, 2015 - 06:31 pm - Link - Report abuse 0
  • yankeeboy

    In the end Argentina will have to re-open and swap every single bond they have. They will soon be in default of every issuance.
    and they are quickly running out of U$

    I hope it happens while CFK is in power.

    Mar 30th, 2015 - 01:21 pm - Link - Report abuse 0
  • Don Alberto

    @ 15 Enrique Massot who wrote the following lie:

    “Only a judge in Ghana and then NY Justice Thomas Griesa, who made a very capricious interpretation of the pari passu clause in the bonds, gave Singer what he wanted.”

    The full United States Court of Appeals affirmed judge Griesa's ruling.

    United States Court of Appeals ruling, NML Capital, Ltd. v. Republic of Argentina 12-105(L) (26 October 2012)

    p.28: (Quote)CONCLUSION
    For the reasons stated, the judgments of the district court (1) granting summary judgment to plaintiffs on their claims for breach of the Equal Treatment Provision and (2) ordering Argentina to make “Ratable Payments” to plaintiffs concurrent with or in advance of its payments to holders of the 2005 and 2010 restructured debt are affirmed.
    (Unquote)
    http://www.shearman.com/~/media/Files/Old%20Site%20Files/secondcircuitdecision110512.pdf
    http://www.shearman.com/~/media/Files/Old%20Site%20Files/secondcircuitdecision110512.pdf

    following which The United States Supreme Court decided not to hear the case, because they considered Griesa's interpretation to be correct.

    Enrique 'Idiot Child' Massot is as usual telling lies.

    Mar 30th, 2015 - 08:15 pm - Link - Report abuse 0
  • Enrique Massot

    30 Don Alberto
    Thank you señor Alberto for your precision.
    The fact that all levels of justice supported Griesa in what he did does not change the essence of his ruling, which was tailored to benefit a bunch of greedy speculative financiers headed by Paul Singer, aka vultures.
    And I suggest saving the insults--they won't chase me from here and show you flying real low.

    Mar 31st, 2015 - 02:46 am - Link - Report abuse 0
  • Don Alberto

    Those are not insults. You have repeatedly shown yourself to be an idiot child and a liar.

    Your idiotic comment #31 shows it clearly.

    If you were right, the full United States Court of Appeals and The United States Supreme Court would also somehow be “tailored to benefit a bunch of greedy speculative financiers headed by Paul Singer, aka vultures”.

    The level of your intelligence also shows when you claim that the hedge funds are vultures, thus claiming that Argentina is a rotting corpse - which is what vultures feed on.

    Mar 31st, 2015 - 03:50 am - Link - Report abuse 0
  • Skip

    Has “hammer time” happened yet?

    Or has no bank found the Vestige loophole yet?

    Mar 31st, 2015 - 06:05 am - Link - Report abuse 0

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