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US Treasury's strong support message for Argentina's litigation with holdout funds

Wednesday, February 10th 2016 - 07:16 UTC
Full article 10 comments
The statement said Lew “echoed Pollack’s strong hope that all creditors will be able to resolve their differences and reach Agreements in Principle with Argentina.” The statement said Lew “echoed Pollack’s strong hope that all creditors will be able to resolve their differences and reach Agreements in Principle with Argentina.”
Last month the US Treasury Department said that the US had ended its policy of opposing most lending to Argentina by multilateral development banks. Last month the US Treasury Department said that the US had ended its policy of opposing most lending to Argentina by multilateral development banks.
Daniel A. Pollack, Special Master in Argentina Debt Negotiation, described Argentina’s offer is “a historic breakthrough’” Daniel A. Pollack, Special Master in Argentina Debt Negotiation, described Argentina’s offer is “a historic breakthrough’”

The United States gave another sign of support for Argentina’s economic policies as US Treasury Secretary Jacob Lew spoke on the phone with Finance Minister Alfonso Prat-Gay, striking an optimistic tone regarding the settlement offer made to the holdout funds in New York.

Last week, the administration of president Mauricio Macri offered an average 25% haircut, vowing to pay US$6.5 billion in cash to end the ongoing litigation. The offer would be completed by issuing bonds at an average six-percent interest rate.

“Secretary Lew commended Argentina’s good faith efforts to resolve this long-standing dispute. Secretary Lew took note of the February 5 statement by Daniel A. Pollack, Special Master in Argentina Debt Negotiation, which noted that Argentina’s offer is “a historic breakthrough,’” a spokesman for the US Treasury said yesterday.

The statement said that Law “echoed Pollack’s strong hope that all creditors will be able to resolve their differences and reach Agreements in Principle with Argentina.”

The warm tone of the conversation is not the first sign of closeness between both officials. The US Treasury Department said last month that the US had ended its policy of opposing most lending to Argentina by multilateral development banks.

Lew had informed Prat-Gay of the move when the two met in Davos, Switzerland, for the World Economic Forum. He said the US will now start considering each Argentine project on its own merit.

Lew had also praised Prat-Gay’s “focus on taking necessary steps to move Argentina toward stronger and sustainable economic growth.”

But at the domestic front, Macri’s administration needs to repeal the so called 'paddock' law to comply with Argentine law if the holdouts receive improved terms. Without a clear majority in Congress, the president needs to negotiate with the main force, the Peronists, who nevertheless seemed divided and prepared to listen and even support the agreement.
 

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  • yankeeboy

    Spin spin spin...
    What else are they going to publicly say?

    All this baloney of trying to “negotiate” is a waste of time, the difference is less than CFK lost SO FAR on YPF.

    Pay it and move on...

    Feb 10th, 2016 - 12:10 pm 0
  • Conqueror

    Why accept any sort of “haircut” from Gay-Prat? The offer is an admission. And don't accept any bonds!

    Feb 10th, 2016 - 12:44 pm 0
  • Marti Llazo

    Singer doesn't much care for Obama's government and less still for the incompetent Secretary Lew. So just what is his “support” worth?

    “US Treasury's strong support ” plus 40 ARS might get you a cortado at the YPF Full. A small one, in a dirty cup.

    Feb 10th, 2016 - 12:54 pm 0
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