The Argentine Economy Minister Axel Kicillof during a conference Press July 31, 2014 in Buenos Aires (AFP / File / Daniel Garcia)
Argentina in selective default, wants to repay its creditors in the financial center of Buenos Aires rather than ‘New York, an initiative driven by the blockage in the United States of its debt maturities but immediately rejected by one of the funds.
In addition to the money due to 93% of its creditors, who agreed to the restructuring, Argentina will file a Trust Fund Public Banco Nacion that the country feels duty to 7% of creditors, hedge funds have so far refused any restructuring, said Minister of Economy Axel Kicillof.
The latter include funds “vultures” NML and Aurelius, who won a long battle court against Buenos Aires.
“Argentina wants to honor its debt maturities and as our payment channel is blocked (a payment of 539 million USD is stuck in New York, ed), we sought another modality, “but” it is not mandatory, each creditor may seek or seek another place of payment, “said the Argentine minister.
If the ECO fund, owned by billionaire Republican Paul Singer, accepted this mode, which is unlikely, it would pocket a gain of “300%” assured the minister.
But much less than the American trial, which Buenos Aires refuses to comply , which provides over $ 800 million to ECO for an initial investment of nearly 50 million, a 1,600% tumble.
The other funds, Aurelius, immediately rejected the government’s offer “the leaders of Argentina have literally chosen to be off-the-law” and “have violated chronically decisions of American courts, lied to our courts, and proclaimed their disdain” for American Justice, t he responded in a statement
-. Bill –
The Argentine government has sent to Congress a bill that has a good chance of being voted because the center-left coalition of President Cristina Kirchner has a majority in the Chamber of Deputies and the Senate.
Argentine President Cristina Kirchner at the airport in Luque Paraguay August 12, 2014 (AFP / File / Norberto Duarte)
In this case, the next debt maturity of $ 200 million, would be paid to creditors on September 30 via Banco Nacion.
According to Minister Economy is a simple change of the counter, a “change of place of payment” and “not a change of jurisdiction.”
But the Argentine economist Nicolas Dujovne it s’ is indeed a “change of venue” that will convince a handful of creditors.
“The situation is getting worse, he observes, and I do not think this measure to be a success. ” For him, it is that the next administration will have to address the issue of debt, after leaving Cristina Kirchner 2015.
All this “reinforces the uncertainty and deepened the recession” in the third economy Latin America, already weakened by high inflation and a decline in industrial production.
The final repayment of $ 539 million has been blocked since June 26 on behalf of Bank of New York, on decision of the American judge Thomas Griesa that prevents Buenos Aires to repay its debt until it has applied the judgment that requires him to pay $ 1.3 billion to fund “vultures”, holders of less than a percent of the debt.
Buenos Aires refuses, arguing that the application of the judgment would collapse the debt restructuring approved by 93% of creditors.
This latest move comes after the failure of negotiations in New York between funds “vultures” and an Argentine government delegation, and an aborted approach Argentine and international banks to redeem their claims to the funds “vultures.”
Declared in “selective default” by rating agencies, Argentina refutes this characterization, highlighting its commitment to meet its liabilities and solvency. For that, she paid last week $ 3 billion to the World Bank and the Inter-American Development Bank (IDB).
Meanwhile, Buenos Aires lodged a complaint against the United States in the Court International Justice (ICJ) in The Hague, the highest court of the UN, which Washington does not recognize the authority.
Copyright © 2014 AFP. All rights of reproduction and distribution reserved.
Read also
No comments:
Post a Comment