MercoPress. South Atlantic News Agency
Argentina close to a full agreement with holdouts: US$ 6.5bn offer to end the litigation
Argentina offered a $6.5 billion cash payment to creditors suing the country over defaulted bonds on Friday, seeking to end an exhausting 14-year legal battle, “the sovereign debt trial of the century”, that transformed the country into a financial markets pariah. Two out of six leading bondholders have already accepted the offer, the U.S. court-appointed mediator said, hailing the proposal by Argentina's new, business-friendly government as an “historic breakthrough”. Read full article
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Disclaimer & comment rulesWhat a difference a sensible, mature leader makes. Argentina is finally facing up to its responsibilities and will benefit in the long term. Unless you agree with Toby that foreign Western money is the source of all evil. Which is basically another way of saying Argentina isn't mature enough to manage its loans so it's safer to cut up its credit cards.
Feb 06th, 2016 - 08:22 am - Link - Report abuse 0Anyway, I am very happy that Argentina is going to pay most of its debt back.
We should wait to see what Singer has to say. He is the prime mover in finally bringing argieland to its knees.
Feb 06th, 2016 - 11:10 am - Link - Report abuse 0Dart Management is broadly the equivalent of Singer and Aurelius and they will need to decide if holding out further is going to confirm what a lot of people have said about them 'being sharks'.
Feb 06th, 2016 - 11:17 am - Link - Report abuse 0Now is the time to prove that to be incorrect. In reality I suspect they are not that far from what they really want as a settlement.
And so the cycle starts again.
Feb 06th, 2016 - 11:47 am - Link - Report abuse 0Bad cheques redeemed with bad cheques.
The only way to ever potentially get even with these greasy rg bastards is to preemptively undermine their efforts at perpetuating their con.
Singer has already made a huge profit off the rg's vis a vis the push pull he exerted on there local equities market and his speculation on the up and down side as he drove it to and fro.
Maybe he'll let the rg thieves off the hook and take the rest of his plunder and go to on to the next deal.
I hope not.
He's ground his heel into their neck and helped to break their country as verified by the political upheaval in rgntiny and has cost them a huge fortune much in excess of what it would have cost them to originally settle.
Exhausting?
No.
Cheering for a winner never is.
Viva the rule of law.
@ 4 On the other hand Argentina has displayed to the world this loan sharks business practices resulting in changes to future defaulting countries so pieces of shit like him will cease to exist.
Feb 06th, 2016 - 12:00 pm - Link - Report abuse 0He is like a blowfly on the worlds ass.
Nothing has changed.
Feb 06th, 2016 - 12:36 pm - Link - Report abuse 0If you want a “deal” - it will be made in NYC and on buyers terms.
And some greasy hawker will stuff the portfolio of some greedy pension fund manager and a third world banana republic or the equivalent will siphon off 90% of the proceeds with the collusion of friends and family and the street will protest because of the tax versus services and . . . .
Like I said - nothing changes because you're going to steal the money and you have no intention of ever paying it back so it really is of no consequence.
It's all a hustle until someone intervenes who is not in on it.
Without the Singers of the world chaos and anarchy rule. Someone has to remind you of the rules and that actions do have consequences.
Enjoy.
They estimate the Kirchners stole U$25B over the last decade.
Feb 06th, 2016 - 01:02 pm - Link - Report abuse 0Singer should have held out for more.
Arg is so close to capitulating.
Maybe they won't make the deadlines..
@5 Hardly.
Feb 06th, 2016 - 01:04 pm - Link - Report abuse 0Singer and company have shown the world just how incompetent Argentina is in selling debt without the usual protections, and trying to sell it cheaply under NY law, where - unfortunately for Argentina's thieves - obligations can be made to be taken seriously.
Singer and company reminded the world of the Argentina made up of arrogant, mendacious, conniving, irresponsible bandits who seem to believe that the benefits of Collective Action Clauses can be made retroactive and without upfront costs.
If Argentina spent as much effort being productive as it does in trying to cheat creditors out of what they are due, then the country might one day turn around and head up that long uphill road to respectability. I don't see that happening.
When Macri was talking about the “joyful revolution,” he was probably thinking about the vultures' joy.
Feb 06th, 2016 - 05:09 pm - Link - Report abuse 0The proposed payment will let the vultures realize 1,000 per cent benefits on their “investment.” Not bad--on the back of the Argentine population and with help of a willing NY judge.
Argentines, meanwhile, have had few joyful experiences with prices going up, unemployment increasing and growing police repression.
@ 9 Kiki MPH
Feb 06th, 2016 - 05:14 pm - Link - Report abuse 0Do us all a favour and STFU about the nonsense spread by TMBOA, she's gone, like you need to be.
9. I guess SCOTUS is willing bunch of judges too.
Feb 06th, 2016 - 05:25 pm - Link - Report abuse 0Gads what a retard.
Quequi, as I STILL talk to Argentines. average ones on the actual streets in actual, you guessed it....Argentina, guess what? Despite that you mention which was the slready, they are still happy with Macri over cunt lips kirchner, la mafiosa. Why do you think fvp fractured already? You are so ignorant all the way up in Canada.
Feb 06th, 2016 - 06:24 pm - Link - Report abuse 0WHY IS IT THAT YOU CANNOT RRTURN?
INTERESTING THAT YOU DO NOT.
Reeeeeeeeeeeekie, go home!
Feb 06th, 2016 - 06:29 pm - Link - Report abuse 0The pain has only just started.
You'd better pray that Singer takes his his foot off the rg neck and lets it breath a little.
Oh Reeeeeeeekie - is there a day approaching that you indicated would never occur?
Legislative approval seems a fait accompli.
If Paul accepts the second or even the third rg offer your prognostication is of course proven false.
Go home and joint the loyal opposition.
@9 I am quite certain that reeky does not know what the hedge funds principals paid for their various sets of bonds, nor the interest rates, nor even when those bonds were purchased, nor the ancillary costs, not could he calculate the gains even if he were provided that information. Instead he is likely taking this “1000 percent benefits” from the usual bosta on the know-nothing media parrot sites.
Feb 06th, 2016 - 08:44 pm - Link - Report abuse 0@9 “Argentines, meanwhile, have had few joyful experiences”
This may be difficult for you to understand and accept, reeky, but the Macri government is showing a 71 percent approval rate in the polls here recently. Could that be because the people understand the degree of damage to the country caused by the Kirchner governments, and how it must now be corrected?
As rgs go - which are a special class unto their selves of third worldish, extra territorial southern Italians - Macaroni is probably one of the better ones.
Feb 06th, 2016 - 10:27 pm - Link - Report abuse 0There was an interesting Casa Rosada note today, that the policy as of the end of this month is “no free food for anybody at the Pink House.” Not even for the president. You can have tea, coffee, or water on the house. But if you want soft drinks or cookies or croissants (that's medialunas here) you have to pay for them. How different this is, compared to the spendthrift previous presidenta who ran up big food and drink tabs for her rather large entourage, all at public expense. I think in the US that would have been called a limousine liberal.
Feb 07th, 2016 - 02:19 am - Link - Report abuse 0Over dinner I asked one of my neighbours why the international media were still referring to the Macri government as “right wing.” He smiled and said it was because this new government expects people to pay for the goods and services they receive. And that includes the president's staff.
Why is everyone releasing doves about Argentina's economy when the return to sanity, lifting of the controls coincides with a steep decline in financial markets, Brazil's currency crisis? I saw in a comment on here that cfk stole billions... When does it start affecring the noquis and welfare recipients... All of this optimism paints a picture that everyone is winning. CfK is a billionaire, hdge funds get their money at the end of february, the middle class can have dollar access... Brazil is suffering from commodity depression and corruotion that looted the central bank... Why is argentina suddenly immune to international backdrop.. When chile is worse every day? Brazil is shedding jobs and uruguay aint getting paid for food sent to venezuela.
Feb 07th, 2016 - 04:53 am - Link - Report abuse 016 Marti Llazo
Feb 07th, 2016 - 10:12 am - Link - Report abuse 0Is there much coverage over there about CFK? I haven't seen anything about her since she lost. Is she turning up for work? I assume she didn't lose her own election. What's she up to?
@17 There have been large “despidos” or releases of dubious workers and those on ill-advised Kirchnerist projects, and there are more to come. In the case of this province (Sta Cruz) the CFK government didn't fund some of the projects as of about the middle of last year and so those people are both out of work and clamoring to be paid back wages and bonuses, which of course the current government probably won't do since their employer/prime contractor was a rather corrupt Kirchnerist. So the national government is likely to let this largely Kirchnerist-controlled province stew in its own juices or rather the juices that result from the failures of Kirchnerism. One of the impacts of that is that right now the accesses to two cities here, Río Turbio and Río Gallegos, are blocked by protesters and we are starting to show signs of running low on fuel and food. Personally I have a backup supply but we shall see. Most of the food and fuel is eventually getting here but after long delays past the roadblocks. Big queues at the service stations.
Feb 07th, 2016 - 03:06 pm - Link - Report abuse 0@17 “hdge funds get their money at the end of february” = Probably not. Three of the main bondholder fund groups have evidently refused the Argentine government offer. The longer that Argentina holds out, the more the interest accrues, and the longer Argentina is kept out of normal international financing. Though you'd have to be reckless and crazy to buy Argentine bonds.
@18 Plenty of local coverage of the negative effects of the CFK government but she is keeping a low profile, with good reason. She has no job so not sure what you mean by showing up for work. Her party (representatives in national congress) have been deserting her.
Why are the media “releasing doves about Argentina's economy,” you ask? Probably has a lot to do with those media (1) being stupid, and (2) being stupid. Combined effects of 30 percent annual inflation and (continuing) devaluation of the ARS are creating problems.
19 Marti
Feb 07th, 2016 - 03:29 pm - Link - Report abuse 0Thanks, that's interesting and it's a shame Mercopress doesn't run a bit of that local coverage. I'm not at all familiar with the parliamentary systems in Argentina so forgive my ignorance but I guess I imagined she still ran for her seat or riding or whatever you call it. Perhaps she didn't or perhaps that's not how your system works. So from what you say she is no longer a politician?
@9. Do you think you've learned not to cheat, lie and steal yet? Don't think that argieland is off the hook. Out of 7..3 billion, at least 7 billion don't believe you.
Feb 07th, 2016 - 05:17 pm - Link - Report abuse 0Argies are congenitinal criminals. Lies are their way of life. See Viveza criolla.
People should act accordingly.
@21. Just an observation:
Feb 07th, 2016 - 05:42 pm - Link - Report abuse 0I used to think that rgntiny's problems were political.
They aren't.
Then I considered the genetic construct.
Maybe a contributing factor.
Hemispheric geography is part of it.
I now strongly suspect that the defects almost universally manifest in the rg are a deeply ingrained cultural phenomena.
And taking the rg out if rgntiny doesn't cure it - at least not in the short term.
In Houston the Mexican and central Americans loathe doing business with the rg xpats.
I don't think that this abhorrence is totally attributable to soccer rivalries.
Perhaps you should do a research project. You're obviously interested based on your posts.
Feb 08th, 2016 - 01:49 am - Link - Report abuse 0It' s been done.
Feb 08th, 2016 - 02:10 pm - Link - Report abuse 0http://www.argentina-rree.com/documentos/culture_escude.htm
@24 That paper (and numerous other observations with similar conclusions) provides reminders of the close parallels between Peronism and Italian Fascism.
Feb 08th, 2016 - 05:31 pm - Link - Report abuse 0@ 5 Klingon writes: “Argentina has displayed to the world this loan sharks business practices resulting in changes to future defaulting countries”
Feb 08th, 2016 - 06:32 pm - Link - Report abuse 0Well, no.
Argentina has drawn attention to what was already common practice.
Being Argentine, they then claim to have invented what has been used for more than 10 years.
Since 2005 *all* bond contracts except five have included a collective action clause, which says that if a supermajority of the bond holders acccept a swap (including those with a haircut), then all bond holders are bound by it. Since 2005 holdouts have been a thing of the past in new bond contracts.
- - - - -
@ 9 Idiot child Enrique Massot, you have been shown, with proper documentation, what NML/Singer paid for the Argentine bonds in 2001, ie. before the default.
Show how that could possibly become a 1,000 percent benefits on their “investment or stand exposed as a liar and an idiot child for the umpteenth time.
@26 “Since 2005 *all* bond contracts except five have included a collective action clause..”
Feb 08th, 2016 - 09:51 pm - Link - Report abuse 0I presume you are referring to Argentine debt sales. It is my understanding that EU jurisdictions now mandate CACs while for NY debt sales of this type, CACs are a recommended but not mandatory option which involve an additional cost to the debt seller (e.g., higher interest). This is one of the reasons that Argentina in the 1990s sold its debt under NY law -- because they did so more cheaply without CAC protection, and so they are paying for that oversight now. One of the problems with some bond sales with CACs is that the restructuring agency cannot locate and get participation from a sufficiently large number to complete the supermajority -- which may be 70 percent or so of bondholders. In the absence of approval of that supermajority, the restructuring can run into even more constraints than had that debt been sold without a CAC.
CAC or no CAC, Argentina has made it abundantly clear that they are babes in the woods when it comes to debt contracting and reliably servicing that debt.
@23. lol.
Feb 08th, 2016 - 11:34 pm - Link - Report abuse 0I've actually got a couple of rgs that could be used for lab rats.
And I could easily get non-rgs for a control group.
But I'd feel guilty about mistreating the control group.
@ 27 Marti Llazo “I presume you are referring to Argentine debt sales.”
Feb 09th, 2016 - 12:40 pm - Link - Report abuse 0Why are you presuming that, when I specifically wrote:
Since 2005 *all* bond contracts except five ...
All means all, especially so, when written *all*.
The 5 exceptions are Jamaican bond contracts.
After the fall of the military dictatorship Argentina increased her debt from 45 to 102 billion dollars. She would have been unable to do this if the bond holders hadn't felt protected by New Yourk law.
Argentina even planned to default while still selling bond contracts. The government was eg. arranging alternative ways to pay diplomatic staff and embassy costs early in 2001.
I've always maintained that rgntiny was an ongoing criminal enterprise with regard to their activities in the US and should be made answerable with RICO type penalties or a cruise missile or two.
Feb 09th, 2016 - 12:52 pm - Link - Report abuse 0You really think that dog will hunt? Bush had the most justified reason to use them when the Chinese downed out AWACS over the Hainan Islands and he did absolutely SHIT. We watched the Chinese dismantle our spy plan. and did nothing. You really think RICO and cruise missiles go hand and hand......damn!!!
Feb 09th, 2016 - 02:12 pm - Link - Report abuse 0Even Bill let on loose.
Feb 09th, 2016 - 04:56 pm - Link - Report abuse 0I've long thought we should bring back gun boat diplomacy.
Feb 09th, 2016 - 08:40 pm - Link - Report abuse 0Not sure why it ever went out of style
:)
I've also wonder why the Brits didn't drop something on BA in 1982.
The war would've ended there
@ 27 Marti Llazo: “One of the problems with some bond sales with CACs is that the restructuring agency cannot locate and get participation from a sufficiently large number to complete the supermajority -- which may be 70 percent or so of bondholders.”
Feb 10th, 2016 - 12:27 am - Link - Report abuse 0Even though there were close to 500,000 (yes, fivehundredthousand) bond holders, Argentina succeded in getting around three quarters of them (app 375,000 holders) to accept the 2005 and 2010 swaps, representing app 93% of the defaulted debt.
A good cac stipulates a supermjority of 67 per cent of the bond holders.
@34 CAC supermajorities vary, typically between about 60 and 75 percent, but the point is moot. The debt that is being sort-of negotiated today (and the subject of the article) did not include CACs, nor CAC-like protection.
Feb 10th, 2016 - 03:11 am - Link - Report abuse 0Argentina probably wishes now that it had included them [CACs] and is publicly acting as if some such feature exists in their favour, but there is no contractual provision to make such a thing retroactive for that debt. The US courts having jurisdiction have rejected Argentina's claim to CAC-like protection. So whether the restructuring has 10 percent or 99 percent adherence, those numbers have no functional significance. Any holdout who does not agree to a restructuring is not contractually bound to such new terms, and can under the prevailing law sue in the manner that we have already observed.
Remember that Argentina was offered CAC protection and insisted that it not be included, so Argentina brought the holdout liability and corresponding high costs and other consequences knowingly upon itself, and has no one to blame but Argentina.
34. Was that 93% of the people or the amount of the bonds?
Feb 12th, 2016 - 01:55 pm - Link - Report abuse 0Remember a great majority of those bonds where held by Argentina itself through agencies and businesses that the Ks forced to accept the deal. Also if I remember correctly the in-country Arg bondholders were offered decent terms in pesos.
Argentina fcked up.
They should pay what they owe, the full amount and move on.
Get this behind them
For gosh sakes we're only talking a few Billion.
Probably less than they stole out of Aerolineas.
@36 “ Also if I remember correctly the in-country Arg bondholders were offered decent terms in pesos....”
Feb 12th, 2016 - 03:46 pm - Link - Report abuse 0Is there such a thing as a decent term in pesos?
But the answer is no, there are still thousands of argento holdouts being stiffed by their government. Remember that they are used to that sort of mistreatment.
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