Saturday, November 08, 2014

Argentina: harder to roll than US hedge funds and their Nixon zombie judge thought

Argentine Finance Minister Axel Kicillof is looking forward the expiration of the RUFO clause in their debt agreements "which prevents Argentina from voluntarily offering holdout creditors better terms than those of its 2005 and 2010 restructurings. This clause ends on January 31 next year." ('Vulture funds are the ebola of the financial system' Buenos Aires Herald 11/06/2014)

Once that clause expires, the vulture funds and their friend the Nixon-appointed zombie judge Thomas Griesa will have a much harder time forcing Argentina into actual default. The Buenos Aires Herald also reports:

A negotiation would possible in January considering a different scenario in Argentina’s debt dispute with vulture funds could emerge, Economy Minister Axel Kicillof said calling the groups of creditors suing the country over its defaulted bonds more than a decade ago the “ebola of the financial system.”

“Starting in January, it is possible that after so many pressures they tried to apply, with the position of the President (Cristina Fernández de Kirchner) very clear, attending the law and (refusing) to not giving some bondholders more than what has been given to others, facing that situation they (vulture funds) have not been able to turn, we will probably find another scenario,” Kicillof said in statements to media.

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