I can't seem to quote more than this but I think this article is worth reading.
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First Published: Thu, Jul 31 2014. 10 36 PM IST
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Argentina blames US, ‘incompetent’ judge for default
Argentine president’s cabinet chief says the country will take the
matter to international courts ‘to exercise its rights before the
international community’
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Argentina blames US, ‘incompetent’ judge for default
Argentina’s economy minister Axel Kicillof speaks during a press
conference at the Argentina Consulate in New York. Photo: AFP
Buenos Aires: Argentina blamed the US on Thursday for the legal battle
that forced it into its second default in 13 years, accusing the judge
and mediator in the case of “incompetence.”
The country officially went into default Wednesday night after the
failure of 11th-hour talks with two US hedge funds refusing to accept a
write-down on their Argentine bonds.
Argentine stocks plummeted 6.42% at the open on Thursday, as the
repercussions of the default began to set in.
Argentine President Cristina Kirchner’s cabinet chief, Jorge Capitanich,
blamed the American government for the default, brought on by a US
court ruling that blocked Buenos Aires from servicing its restructured
debt without also paying the hedge funds the $1.3 billion it owes them.
“If there’s a judge who’s an agent of these speculative funds, if the
mediator is their agent, what is this justice you’re talking about?
There’s a responsibility of the state here, of the US, to create the
conditions for the unconditional respect of other countries’
sovereignty,” he told a press conference in Buenos Aires.
He accused US district judge Thomas Griesa and court-appointed mediator
Dan Pollack of “incompetence” and said Argentina would take the matter
to international courts “to exercise its rights before the international
community.”
Kirchner was due to give a nationally televised address Thursday
evening.
Griesa, meanwhile, set a hearing on the case for Friday at 11 am (1500
GMT), a court spokesman told AFP.
Ratings agency Standard & Poor’s (S&P) had already placed
Argentina in “selective default” before the unsuccessful end of
Wednesday’s marathon negotiations between Argentine economy minister
Axel Kicillof and hedge funds NML Capital and Aurelius Capital
Management.
The talks’ failure caused Argentina to miss a payment of $539 million on
the debt it restructured after its 2001 economic crisis.
Griesa barred the country from paying “exchange creditors” who accepted a
70% write-down on their bonds without also paying the so-called
“holdouts” the full $1.3 billion it owes them.
Argentina says paying the holdouts could expose it to claims for up to
$100 billion from exchange creditors, who are entitled to equal
treatment under what is called a Rights Upon Future Offers, or RUFO,
clause.
Hedge fund NML said Argentina bore full responsibility for its own
default.
“During this process, the (mediator) proposed numerous creative
solutions, many of which were acceptable to us. Argentina refused to
seriously consider any of them, and instead chose to default,” a
spokesman said.
But Argentina complained that the creditors—which bought defaulted
Argentine bonds at knockdown rates, then sued for full payment—had
refused to compromise.
“What we offered them in terms of profit was 300%. It was not accepted,
because they want more, and they want it now,” Kicillof said.
The economy minister slammed S&P’s downgrade, arguing Argentina
could not be regarded as being in default since the money for the
repayment was in a US bank account but frozen by Griesa’s court order.
“Argentina paid. It has money. It is going to continue to pay. The one
who is responsible for this situation is Judge Griesa,” he said.
The Bank of New York said on Thursday that it continued to hold onto
Argentina’s $539-million debt payment, saying it was sitting in the US
bank’s account at Argentina’s central bank because of Griesa’s ruling.
Aftershocks of 2001
Wall Street and the Buenos Aires stock exchange opened sharply lower on
Thursday following news of Argentina’s default.
Argentine stocks tumbled 6.42%, while the Dow Jones Industrial Average,
S&P 500 and Nasdaq were also down.
Argentine press reports, however, suggested an alternative solution was
being prepared in which a coalition of Argentine private banks would buy
some or all of the outstanding debt.
Argentina got a show of support from French finance minister Michel
Sapin, who said he was “extremely shocked” by the outcome of the legal
battle.
“This undermines a decision taken in everyone’s interest” to restructure
Argentina’s debt, he said, warning the court ruling would jeopardize
future debt restructuring for countries in crisis.
Analysts have warned the default will deepen the economic malaise
gripping Argentina, exacerbating its already unruly inflation—prices
rose 15% in the first half of the year—and perhaps forcing another
devaluation of the peso, already devalued 20% in January.
Argentina’s 2001 default on $100 billion in foreign debt, the largest in
history at the time, plunged the country into an economic and social
crisis it is still battling to overcome.
But the global impact of the new default will be far smaller, since
Argentina has been locked out of international capital markets since its
2001 default, analysts say. AFP
Read more at:
http://www.livemint.com/Politics/FTR0lcy1lLsmGnxDsmn4zH/Argentina-blames-US-incompetent-judge-for-default.html?utm_source=copy
Argentina blames US,
‘incompetent’ judge for default
Argentine president’s cabinet chief says the country will take the
matter to international courts ‘to exercise its rights before the
international community’
E-mailPrint
Sonia Avalos Mail Me
inShare
0
inShare
0
Comments
Subscribe to: Daily Newsletter Breaking News
Latest News
09:11 PM IST
Ranbaxy gains leadership in Diovan sales in US
08:59 PM IST
BSE seeks clarity from FTIL on MCX stake sale
08:20 PM IST
Commonwealth Games: Pinki Jangra settles for bronze in boxing
07:54 PM IST
Ebola ‘moving faster than efforts to control it’: WHO
07:35 PM IST
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WTO deal: John Kerry sees room for compromise with India
Maruti Suzuki Q1 profit up 21% as sentiment improves
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Govt to fast-track labour law amendments
Govt to fast-track labour law amendments
India tells John Kerry US snooping is ‘unacceptable’
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Amazon raises stakes in e-commerce battle with Flipkart
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Argentina blames US, ‘incompetent’ judge for default
Argentina’s economy minister Axel Kicillof speaks during a press
conference at the Argentina Consulate in New York. Photo: AFP
Buenos Aires: Argentina blamed the US on Thursday for the legal battle
that forced it into its second default in 13 years, accusing the judge
and mediator in the case of “incompetence.”
The country officially went into default Wednesday night after the
failure of 11th-hour talks with two US hedge funds refusing to accept a
write-down on their Argentine bonds.
Argentine stocks plummeted 6.42% at the open on Thursday, as the
repercussions of the default began to set in.
Argentine President Cristina Kirchner’s cabinet chief, Jorge Capitanich,
blamed the American government for the default, brought on by a US
court ruling that blocked Buenos Aires from servicing its restructured
debt without also paying the hedge funds the $1.3 billion it owes them.
“If there’s a judge who’s an agent of these speculative funds, if the
mediator is their agent, what is this justice you’re talking about?
There’s a responsibility of the state here, of the US, to create the
conditions for the unconditional respect of other countries’
sovereignty,” he told a press conference in Buenos Aires.
He accused US district judge Thomas Griesa and court-appointed mediator
Dan Pollack of “incompetence” and said Argentina would take the matter
to international courts “to exercise its rights before the international
community.”
Kirchner was due to give a nationally televised address Thursday
evening.
Griesa, meanwhile, set a hearing on the case for Friday at 11 am (1500
GMT), a court spokesman told AFP.
Ratings agency Standard & Poor’s (S&P) had already placed
Argentina in “selective default” before the unsuccessful end of
Wednesday’s marathon negotiations between Argentine economy minister
Axel Kicillof and hedge funds NML Capital and Aurelius Capital
Management.
The talks’ failure caused Argentina to miss a payment of $539 million on
the debt it restructured after its 2001 economic crisis.
Griesa barred the country from paying “exchange creditors” who accepted a
70% write-down on their bonds without also paying the so-called
“holdouts” the full $1.3 billion it owes them.
Argentina says paying the holdouts could expose it to claims for up to
$100 billion from exchange creditors, who are entitled to equal
treatment under what is called a Rights Upon Future Offers, or RUFO,
clause.
Hedge fund NML said Argentina bore full responsibility for its own
default.
“During this process, the (mediator) proposed numerous creative
solutions, many of which were acceptable to us. Argentina refused to
seriously consider any of them, and instead chose to default,” a
spokesman said.
But Argentina complained that the creditors—which bought defaulted
Argentine bonds at knockdown rates, then sued for full payment—had
refused to compromise.
“What we offered them in terms of profit was 300%. It was not accepted,
because they want more, and they want it now,” Kicillof said.
The economy minister slammed S&P’s downgrade, arguing Argentina
could not be regarded as being in default since the money for the
repayment was in a US bank account but frozen by Griesa’s court order.
“Argentina paid. It has money. It is going to continue to pay. The one
who is responsible for this situation is Judge Griesa,” he said.
The Bank of New York said on Thursday that it continued to hold onto
Argentina’s $539-million debt payment, saying it was sitting in the US
bank’s account at Argentina’s central bank because of Griesa’s ruling.
Aftershocks of 2001
Wall Street and the Buenos Aires stock exchange opened sharply lower on
Thursday following news of Argentina’s default.
Argentine stocks tumbled 6.42%, while the Dow Jones Industrial Average,
S&P 500 and Nasdaq were also down.
Argentine press reports, however, suggested an alternative solution was
being prepared in which a coalition of Argentine private banks would buy
some or all of the outstanding debt.
Argentina got a show of support from French finance minister Michel
Sapin, who said he was “extremely shocked” by the outcome of the legal
battle.
“This undermines a decision taken in everyone’s interest” to restructure
Argentina’s debt, he said, warning the court ruling would jeopardize
future debt restructuring for countries in crisis.
Analysts have warned the default will deepen the economic malaise
gripping Argentina, exacerbating its already unruly inflation—prices
rose 15% in the first half of the year—and perhaps forcing another
devaluation of the peso, already devalued 20% in January.
Argentina’s 2001 default on $100 billion in foreign debt, the largest in
history at the time, plunged the country into an economic and social
crisis it is still battling to overcome.
But the global impact of the new default will be far smaller, since
Argentina has been locked out of international capital markets since its
2001 default, analysts say. AFP
Read more at:
http://www.livemint.com/Politics/FTR0lcy1lLsmGnxDsmn4zH/Argentina-blames-US-incompetent-judge-for-default.html?utm_source=copy
Argentina blames US,
‘incompetent’ judge for default
Argentine president’s cabinet chief says the country will take the
matter to international courts ‘to exercise its rights before the
international community’
E-mailPrint
Sonia Avalos Mail Me
inShare
0
inShare
0
Comments
Subscribe to: Daily Newsletter Breaking News
Latest News
09:11 PM IST
Ranbaxy gains leadership in Diovan sales in US
08:59 PM IST
BSE seeks clarity from FTIL on MCX stake sale
08:20 PM IST
Commonwealth Games: Pinki Jangra settles for bronze in boxing
07:54 PM IST
Ebola ‘moving faster than efforts to control it’: WHO
07:35 PM IST
Pfizer issues lockout notice at Navi Mumbai plant
Editor's picks
WTO deal: John Kerry sees room for compromise with India
WTO deal: John Kerry sees room for compromise with India
Maruti Suzuki Q1 profit up 21% as sentiment improves
Maruti Suzuki Q1 profit up 21% as sentiment improves
Govt to fast-track labour law amendments
Govt to fast-track labour law amendments
India tells John Kerry US snooping is ‘unacceptable’
India tells John Kerry US snooping is ‘unacceptable’
Amazon raises stakes in e-commerce battle with Flipkart
Amazon raises stakes in e-commerce battle with Flipkart
Argentina blames US, ‘incompetent’ judge for default
Argentina’s economy minister Axel Kicillof speaks during a press
conference at the Argentina Consulate in New York. Photo: AFP
Buenos Aires: Argentina blamed the US on Thursday for the legal battle
that forced it into its second default in 13 years, accusing the judge
and mediator in the case of “incompetence.”
The country officially went into default Wednesday night after the
failure of 11th-hour talks with two US hedge funds refusing to accept a
write-down on their Argentine bonds.
Argentine stocks plummeted 6.42% at the open on Thursday, as the
repercussions of the default began to set in.
Argentine President Cristina Kirchner’s cabinet chief, Jorge Capitanich,
blamed the American government for the default, brought on by a US
court ruling that blocked Buenos Aires from servicing its restructured
debt without also paying the hedge funds the $1.3 billion it owes them.
“If there’s a judge who’s an agent of these speculative funds, if the
mediator is their agent, what is this justice you’re talking about?
There’s a responsibility of the state here, of the US, to create the
conditions for the unconditional respect of other countries’
sovereignty,” he told a press conference in Buenos Aires.
He accused US district judge Thomas Griesa and court-appointed mediator
Dan Pollack of “incompetence” and said Argentina would take the matter
to international courts “to exercise its rights before the international
community.”
Kirchner was due to give a nationally televised address Thursday
evening.
Griesa, meanwhile, set a hearing on the case for Friday at 11 am (1500
GMT), a court spokesman told AFP.
Ratings agency Standard & Poor’s (S&P) had already placed
Argentina in “selective default” before the unsuccessful end of
Wednesday’s marathon negotiations between Argentine economy minister
Axel Kicillof and hedge funds NML Capital and Aurelius Capital
Management.
The talks’ failure caused Argentina to miss a payment of $539 million on
the debt it restructured after its 2001 economic crisis.
Griesa barred the country from paying “exchange creditors” who accepted a
70% write-down on their bonds without also paying the so-called
“holdouts” the full $1.3 billion it owes them.
Argentina says paying the holdouts could expose it to claims for up to
$100 billion from exchange creditors, who are entitled to equal
treatment under what is called a Rights Upon Future Offers, or RUFO,
clause.
Hedge fund NML said Argentina bore full responsibility for its own
default.
“During this process, the (mediator) proposed numerous creative
solutions, many of which were acceptable to us. Argentina refused to
seriously consider any of them, and instead chose to default,” a
spokesman said.
But Argentina complained that the creditors—which bought defaulted
Argentine bonds at knockdown rates, then sued for full payment—had
refused to compromise.
“What we offered them in terms of profit was 300%. It was not accepted,
because they want more, and they want it now,” Kicillof said.
The economy minister slammed S&P’s downgrade, arguing Argentina
could not be regarded as being in default since the money for the
repayment was in a US bank account but frozen by Griesa’s court order.
“Argentina paid. It has money. It is going to continue to pay. The one
who is responsible for this situation is Judge Griesa,” he said.
The Bank of New York said on Thursday that it continued to hold onto
Argentina’s $539-million debt payment, saying it was sitting in the US
bank’s account at Argentina’s central bank because of Griesa’s ruling.
Aftershocks of 2001
Wall Street and the Buenos Aires stock exchange opened sharply lower on
Thursday following news of Argentina’s default.
Argentine stocks tumbled 6.42%, while the Dow Jones Industrial Average,
S&P 500 and Nasdaq were also down.
Argentine press reports, however, suggested an alternative solution was
being prepared in which a coalition of Argentine private banks would buy
some or all of the outstanding debt.
Argentina got a show of support from French finance minister Michel
Sapin, who said he was “extremely shocked” by the outcome of the legal
battle.
“This undermines a decision taken in everyone’s interest” to restructure
Argentina’s debt, he said, warning the court ruling would jeopardize
future debt restructuring for countries in crisis.
Analysts have warned the default will deepen the economic malaise
gripping Argentina, exacerbating its already unruly inflation—prices
rose 15% in the first half of the year—and perhaps forcing another
devaluation of the peso, already devalued 20% in January.
Argentina’s 2001 default on $100 billion in foreign debt, the largest in
history at the time, plunged the country into an economic and social
crisis it is still battling to overcome.
But the global impact of the new default will be far smaller, since
Argentina has been locked out of international capital markets since its
2001 default, analysts say. AFP
Read more at:
http://www.livemint.com/Politics/FTR0lcy1lLsmGnxDsmn4zH/Argentina-blames-US-incompetent-judge-for-default.html?utm_source=copy
