Sunday, December 14, 2014

2014: Argentina vs. the vulture funds

One of the most interesting and significant events of 2014 was the battle of Argentina against Paul Singer and the vulture funds trying to drive Argentina into bankruptcy with the assistance of the apparently senile Nixon-appointed zombie judge Thomas Griesa.

This is a background report on the debt issue with which Argentina has been dealing, V7inter - Soberanía y reestructuración de deuda TV Pública argentina 20.09.2014:



Argentina has gained considerable international support for reforms in the international debt market to prevent such predatory banking and judicial practices as we've seen in this case (Argentina welcomes G20 call for work on debt restructurings Reuters 11/16/2014):

In Brisbane, Argentine Economy Minister Axel Kicillof welcomed the final G20 statement, which recognized the need to strengthen the "orderliness and predictability" of sovereign restructurings, and the challenges of litigation to the process.

"We are extremely satisfied", Kicillof said in comments posted on the government's YouTube page.

"Argentina denounced the actions of vulture funds and this is something that should be taken up by the leaders of countries because the truth is that limiting the reach of speculators ... must be a constant concern of the G20."

In October, the International Monetary Fund (IMF) urged a rethink of how sovereign bonds should be structured to avoid future debt restructurings turning into a repeat of Argentina's disruptive court battle with a few disgruntled creditors.

The IMF called for more robust so-called collective action clauses -- aimed at making restructuring agreements binding on all bondholders -- to remove the risk of some investors shunning debt workouts and taking legal action for years to squeeze cash from the debtor.
Argentina has so far been successful in preventing default and in maintaining its credibility in its international credit-worthiness. ("Un espaldarazo de confianza" Página/12 14.12.2014)