Friday, September 26, 2014

Argentine debt drama with the vulture funds

Part 4 of an Argentine documentary on sovereign debt and the vulture funds, Deuda: Historia de una extorsión (4 de 5) TV Pública argentina 20.09.2014. This segment features an interview with Argentine Economics Minister Axel Kicillof.

See previous posts for earlier parts.

The Buenos Aires Herald has reports on some public diplomatic jockeying between the US and Argentina.

US says ties with Argentina going through 'tough period' 09/26/2014:

Last week, the Argentine government summoned Business attaché for the US embassy in Buenos Aires Kevin Sullivan after he stated Argentina has to “get out of the default to re-gain economic growth perspectives.”

Foreign Minister Héctor Timerman said sanctions will be applied if the US insists on the comments, as the government considers Argentina is not in default, as it has “honored its debt”.
Timerman: 'Argentina not upset with US, Germany' 09/26/2014:

[Argentine Foreign Minister] Timerman rejected one more time statements made by Germany's Finance Minister Wolgang Schauble and reproduced by an ad recently published in Argetnine media and signed by the American Task Force Argetnina [sic] group.

"The German minister made untrue statements," he told a news agency, adding "but we are not upset."
Germany tones down clash over ‘vulture funds’ 09/26/2014:

“We want to solve any pending matters with Argentina in a constructive way, and we count on the cooperation from Argentina’s government,” a spokesman for the German Foreign Ministry told German agency DPA.

The conflict was originally ignited after the Vulture Fund-backed lobbying group American Task Force Argentina (ATFA) quoted Schäuble placing the blame of the debt conflict on Argentina’s shoulders, painting the country as an irresponsible nation that ‘lived for decades beyond its means‘, prompting a strongly-worded response by Cabinet Chief Jorge Capitanich against Germany’s position on debt matters.

German diplomacy distanced itself from ATFA’s ad, stating yesterday that the government “has no relationship or contact with its authors. The Hedge Funds that obtained a favorable ruling in New York against Argentina aren’t based in Germany. The German government doesn’t take sides in the dispute between Argentina and the holdouts.”

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