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Griesa lifts injunctions: 'Argentina needs time to raise money to pay creditors'

Thursday, March 3rd 2016 - 04:57 UTC
Full article 5 comments

A judge sided with Argentina in its debt standoff on Wednesday, agreeing to let orders protecting creditors expire so that large U.S. hedge funds and smaller entities and people can be paid at least US$6.2 billion to satisfy settlements reached over the last month. Read full article

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  • Pontefractious

    Once again Griesa is showing his qualities as a judge. For the agreement conditions to be fulfilled, Macri needs to get legislation passed in Buenos Aires. With the opposition in the majority, this is no easy task. Griesa, by lifting the embargo, is giving real recognition to the progress that has been made, something Macri can show the Argentine legislature to help persuade them to co-operate. Of course those who are waiting to settle are upset. But I think Macri's people will be under strong moral pressure to settle with them on acceptable grounds - Macri will not want to get on the wrong side of Griesa when Griesa is so obviously willing to help get this thing sorted.

    Mar 03rd, 2016 - 01:45 pm - Link - Report abuse 0
  • Marti Llazo

    Interesting other little note surrounding the agreements on the Big Deal: as of the first of March, and until the Big Five creditors get paid, Argentina has to pay an additional US$322,795 in interest daily to that group of five. But some other creditors aren't getting that kind of interest, and are asking why.

    There are still a lot of creditors, some with judgments in their favour, who don't have agreements at all, and their share represents a good bit of money. So long as they have unsatisfied claims, the Big Deal is in danger of falling to pieces or being supplemented at a later date by a new pari passu injunction event.

    Mar 04th, 2016 - 04:32 am - Link - Report abuse 0
  • Moderator

    The creditors that have no deal yet, have lodged an appeal the meantime.

    Mar 04th, 2016 - 09:35 am - Link - Report abuse 0
  • Pontefractious

    @4 - There are always likely to be creditors who want to take advantage of the situation to try to screw slightly better terms out of the debtor. While the Argentine government was pursuing a policy of total non-cooperation Griesa was willing to listen to these people since it merely put more and more pressure on the Argentines to settle. Now that the settlement process is under way, Griesa is less likely to listen. If the whole house of cards is brought down now then the Argentines will with some justification say that they gave it their best shot and complain that if the creditors are not prepared to negotiate in good faith then the whole process is a waste of time. With Argentina then firmly occupying the moral high ground who knows where things might end up but certainly not good for anyone. So Griesa will bring a great deal of pressure to bear on the remaining creditors to settle or be left out in the cold.

    Mar 04th, 2016 - 12:21 pm - Link - Report abuse 0
  • Marti Llazo

    @4 “ ....screw slightly better terms out of the debtor.”

    In this case it's the habitual Argentine practice of trying to thumb-screw worse terms for smaller creditors. And that includes a large group of Argentine bondholders who presumably have some expectation of decent treatment in the matter for having bought the bonds at full faith and full price long before the 2001 default announcement. Providing terms to the remaining holdouts on a par with those offered to the majors doesn't seem like it should be difficult. But since many of those holdouts are Argentine citizens, the buzz here is that the Argentine government wishes to symbolically slam its own for holding out. The result is that there is no moral high ground for the Argentine government, no matter how many pasties the media and the apologists may try to disguise it with. And if the Big Deal fizzles.... Argentistan remains locked in the Stone Age, bleeding reserves at one billion USD a month until the next default.

    Mar 04th, 2016 - 01:59 pm - Link - Report abuse 0

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