Arab Today, arab today argentina hedge funds fail to strike debt deal
Last Updated : GMT 23:23:41
Arab Today, arab today
Arab Today, arab today

Argentina, hedge funds fail to strike debt deal

Arab Today, arab today

Arab Today, arab today Argentina, hedge funds fail to strike debt deal

Woman passes by a poster
New York - AFP

Argentina failed to reach a deal with hedge funds demanding full payment on its defaulted bonds, veering closer to what the IMF warned could be a painful new default.
With less than a week to go to either pay up or risk being declared in default, Argentine officials met with the US court-appointed mediator trying to break the impasse, but refused to meet the hedge funds' representatives directly, said the mediator, New York lawyer Dan Pollack.
"After speaking with both sides, separately, I proposed and urged direct, face-to-face talks between the parties. The representatives of the bondholders were agreeable to direct talks; the representatives of (Argentina) declined to engage in direct talks," Pollack said in a statement.
"The issues separating the parties remain unresolved at this time," he added, saying new talks would be held Friday.
One of the main funds battling for full payment, NML Capital, said Argentina had "made clear that it will be choosing to default."
The Argentine government "refused to negotiate any aspect of the dispute," it said. "There is currently a total lack of willingness on Argentina's part to solve this problem."
With a June 30 payment deadline looming, time is running out for Argentina to deal with the fallout of its 2001 default, which plunged the country into an economic crisis it is still battling back from.
Under restructuring plans reached in 2005 and 2010, it has persuaded 92 percent of its creditors to accept writeoffs of up to 70 percent.
But US District Judge Thomas Griesa's ruling in favor of the so-called "holdout" hedge funds -- which Argentina calls "vulture" funds -- has trapped the country in a Catch-22.
Under the ruling, it cannot pay its other creditors without also paying the hedge funds; but under the restructuring deal, it is supposed to pay all its creditors the same.
If it pays the holdouts 100 percent of the $1.3 billion it owes them, it could be forced to pay all remaining creditors in full, as well -- for a total bill of up to $15 billion.
- 'Substantial costs' -
The International Monetary Fund's chief economist, Olivier Blanchard, warned a default could hurt both the Argentine economy and the global financial system.
"If it goes into default and doesn't pay the holdouts, there might be substantial costs, being basically unable to access markets for some time," he said at a news conference where the IMF cut its global growth forecast for 2014 by three percentage points to 3.4 percent.
A default would also cast serious doubts on the ability of existing systems to resolve debt disputes when countries get into trouble, he added.
"There's much more uncertainty as to how we'll be able to restructure debt for others countries in the future," he said.
Ahead of Thursday's talks, there had been speculation the two sides could reach a deal under which the beleaguered South American country would pay the hedge funds a guarantee to buy more time.
The clause in Argentina's restructuring deal that entitles all debt holders to the same level of repayment -- called a Rights Upon Future Offers, or RUFO, clause -- expires at the end of the year.
But Argentina denied that plans were in the works for a guarantee payment.
"Nobody can demand a guarantee from a sovereign country," cabinet chief Jorge Capitanich told journalists in Buenos Aires, sticking to the defiant tone the government has struck throughout its legal wrangling with the funds.
The other main fund involved in the dispute, Aurelius Capital Management, also denied any such plan.
Aurelius and NML bought up Argentine debt at cut-rate prices when it was already in default, then sued the country to stop it from carrying out its restructuring plan with an initial payment of $539 million scheduled for last month.
Argentina is pushing for Griesa's decision to be suspended until the end of the year so it can go ahead with restructured payments.

Name *

E-mail *

Comment Title*

Comment *

: Characters Left

Mandatory *

Terms of use

Publishing Terms: Not to offend the author, or to persons or sanctities or attacking religions or divine self. And stay away from sectarian and racial incitement and insults.

I agree with the Terms of Use

Security Code*

Arab Today, arab today argentina hedge funds fail to strike debt deal Arab Today, arab today argentina hedge funds fail to strike debt deal

 



Arab Today, arab today
Arab Today, arab today Prepares to present her new collection

GMT 14:29 2017 Monday ,20 February

Prepares to present her new collection
Arab Today, arab today Tourism shows signs of recovery

GMT 09:59 2017 Monday ,20 February

Tourism shows signs of recovery
Arab Today, arab today Sarah Belamesh designs antiques of "ceramic"

GMT 19:45 2017 Monday ,20 February

Sarah Belamesh designs antiques of "ceramic"
Arab Today, arab today Optimism on the front line

GMT 07:24 2017 Monday ,20 February

Optimism on the front line
Arab Today, arab today Murder of 2 reporters in Dominican Republic

GMT 22:45 2017 Thursday ,16 February

Murder of 2 reporters in Dominican Republic
View News in Arabic - Business: اقتصاد دولي
Arab Today, arab today
Arab Today, arab today
Arab Today, arab today Kidogo provides childcare for underserved

GMT 20:24 2017 Wednesday ,15 February

Kidogo provides childcare for underserved
Arab Today, arab today Tragic fluctuations of Bakhtiari's life revealed

GMT 06:50 2017 Wednesday ,15 February

Tragic fluctuations of Bakhtiari's life revealed
Arab Today, arab today London to tax old cars

GMT 14:06 2017 Friday ,17 February

London to tax old cars
Arab Today, arab today Pluto's unruly moons

GMT 06:31 2015 Thursday ,04 June

Pluto's unruly moons
Arab Today, arab today Nissan enhances sales in most markets

GMT 14:08 2017 Monday ,20 February

Nissan enhances sales in most markets
Arab Today, arab today Competes Sweden and Germans by S90

GMT 22:36 2017 Thursday ,16 February

Competes Sweden and Germans by S90
Arab Today, arab today Egypt to hold first session of Arab film festival

GMT 21:11 2017 Saturday ,18 February

Egypt to hold first session of Arab film festival
Arab Today, arab today Teach monkeys to recognize themselves in mirror

GMT 20:41 2017 Wednesday ,15 February

Teach monkeys to recognize themselves in mirror

GMT 07:30 2017 Saturday ,18 February

Actress Nadeen Al Rassi views art as her entity

GMT 06:40 2017 Friday ,10 February

MP calls for removing text from Islamic story

GMT 19:10 2017 Friday ,17 February

Hats, scarves add beauty to women

GMT 10:26 2017 Tuesday ,14 February

Emergency UN meeting in Harare

GMT 23:29 2017 Thursday ,16 February

Home built on sand castles-style costs $8m

GMT 21:49 2017 Thursday ,16 February

Scientists develop new therapy

GMT 19:16 2017 Friday ,17 February

Aziz House ready to host the tourists

GMT 13:12 2015 Saturday ,09 May

Sheikh Sultan opens Sharjah Centre

GMT 12:39 2017 Monday ,20 February

newest smartphone another winner for Huawei

GMT 13:16 2017 Tuesday ,14 February

First fashion model with Down syndrome
Arab Today, arab today
Arab Today, arab today
 
 Arab Today Facebook,arab today facebook  Arab Today Twitter,arab today twitter Arab Today Rss,arab today rss  Arab Today Youtube,arab today youtube  Arab Today Youtube,arab today youtube
arabstoday arabstoday arabstoday arabstoday
arabstoday arabstoday arabstoday
arabstoday
بناية النخيل - رأس النبع _ خلف السفارة الفرنسية _بيروت - لبنان
arabstoday, Arabstoday, Arabstoday