Arab Today, arab today argentina hopes for lastminute exit as default looms
Last Updated : GMT 00:00:56
Arab Today, arab today
Arab Today, arab today

Argentina hopes for last-minute exit as default looms

Arab Today, arab today

Arab Today, arab today Argentina hopes for last-minute exit as default looms

Argentine debt crisis Daniel Pollack
Buenos Aires - AFP

With one day remaining to stave off its second default in 13 years, Argentina voiced hope Tuesday for a last-minute solution but repeated its unwillingness to budge in negotiations with creditors.
Buenos Aires has until the end of Wednesday to resolve its dispute with so-called "holdout" hedge funds whose refusal to accept a write-down on the debt it defaulted on in 2001 has pushed Latin America's third-largest economy to the brink of a new default.
Argentine officials were holding last-ditch talks in New York with the US court-appointed mediator tasked with resolving the standoff, lawyer Dan Pollack.
But Buenos Aires, which has insisted the only possible solution is for US District Judge Thomas Griesa to suspend his ruling in favor of the hedge funds, maintained a defiant tone.
"We hope the negotiations can advance, but that doesn't depend on us," President Cristina Kirchner's cabinet chief, Jorge Capitanich, told journalists in Buenos Aires.
However, in a sign Argentina has not turned its back on the talks, he said Economy Minister Axel Kicillof, who is currently in Venezuela for a summit of South American regional bloc Mercosur, may fly to New York to take part.
Judge Griesa's ruling has trapped Argentina in a Catch-22, barring it from making payments on its restructured debt without also paying the holdouts the full $1.3 billion it owes them.
But Argentina's 2005 and 2010 debt restructuring deals -- in which creditors accepted a 70-percent write-down -- could fall apart if it pays the hedge funds in full.
The 92 percent of creditors who agreed to take a haircut could launch claims for equal treatment under what is called a Rights Upon Future Offers, or RUFO, clause.
Argentina was due to make a $539-million payment on the restructured bonds on June 30. The 30-day grace period expires Wednesday.
The RUFO clause meanwhile expires at the end of the year, leaving Argentina scrambling to find a way to placate the holdouts until then.
Eager to demonstrate its solvency, Argentina announce Monday it had made a $642-million payment to the so-called Paris Club of wealthy nations with whom it reached a deal in May to clear nearly $10 billion in arrears.
Griesa also allowed it to make a payment on some of its restructured bonds because they could not be distinguished from others issued as part of Buenos Aires' compensation deal with Spanish energy group Repsol for the 2012 nationalization of its subsidiary YPF.
But he called the ruling a one-time exception and ordered Citibank, which handles the payments, to find a way to separate the bonds by Wednesday.
- Default as political weapon-
Analysts have warned a default would deepen the economic malaise gripping Argentina, exacerbating its already troubling inflation -- prices rose 15 percent in the first half of the year -- and perhaps forcing another devaluation of the peso, already devalued 20 percent in January.
A default would also likely prolong Argentina's isolation from international capital markets, which it has been locked out of since halting payments on its more than $100 billion in foreign debt in 2001.
That default, the largest in history at the time, plunged Argentina into an economic and social crisis it is still battling to bounce back from.
But unlike in 2001, when the economic crisis sparked a political crisis that turned the Argentine presidency into a revolving door, President Kirchner has managed to turn the current debt standoff into a political weapon.
Her government has branded holdouts NML Capital and Aurelius Capital Management "vulture funds" for buying up defaulted Argentine debt at discount rates, then suing for full payment.
That rhetoric has found a receptive audience both at home and with Kirchner's fellow leftist leaders around Latin America.
The government "presents the issue as a matter of choosing between your nation or the vultures, and that puts the opposition in a difficult position," sociologist Ricardo Rouvier of consultancy Homonima told AFP.
Nearly 50 percent of Argentines support the way Kirchner is dealing with the holdouts, while just 25 percent view it negatively, according to a recent poll.
"A lot of people like this talk of 'nation versus vultures,' without realizing that afterward they might end up losing their jobs," said Elisa Carrio, a lawmaker for the opposition Civic Coalition.

 

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 hopes for lastminute exit as default looms Arab Today, arab today argentina hopes for lastminute exit as default looms

 



Arab Today, arab today
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 Top Yemen commander killed

GMT 09:55 2017 Wednesday ,22 February

Top Yemen commander killed
Arab Today, arab today Media host Mona Iraqi stresses her show's success

GMT 15:32 2017 Wednesday ,22 February

Media host Mona Iraqi stresses her show's success

GMT 11:43 2017 Wednesday ,22 February

South Africa budget throws light on fractured ANC

GMT 11:35 2017 Wednesday ,22 February

British economy grows 0.7% in final quarter of 2016

GMT 06:04 2017 Wednesday ,22 February

Hammond closes in on budget goal

GMT 05:34 2017 Wednesday ,22 February

Euro zone economy outlook shines

GMT 04:10 2017 Wednesday ,22 February

US stocks finish at another all-time high
View News in Arabic - Business: اقتصاد دولي
Arab Today, arab today
Arab Today, arab today
Arab Today, arab today To hold social dialogue over secondary school

GMT 07:43 2017 Wednesday ,22 February

To hold social dialogue over secondary school
Arab Today, arab today 63-Year-Old Woman Delivers Baby

GMT 12:35 2017 Tuesday ,21 February

63-Year-Old Woman Delivers Baby
Arab Today, arab today Milan laughs while Rome cries

GMT 10:28 2017 Wednesday ,22 February

Milan laughs while Rome cries
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 Janat pleased for issuing 'Good Morning'

GMT 06:41 2017 Monday ,20 February

Janat pleased for issuing 'Good Morning'
Arab Today, arab today Small ponds have outsized impact

GMT 15:53 2017 Tuesday ,21 February

Small ponds have outsized impact

GMT 06:34 2017 Sunday ,19 February

Ahmed Fahmy stresses he did not ignore singing

GMT 06:50 2017 Wednesday ,15 February

Tragic fluctuations of Bakhtiari's life revealed

GMT 14:29 2017 Monday ,20 February

Prepares to present her new collection

GMT 14:06 2017 Friday ,17 February

London to tax old cars

GMT 23:29 2017 Thursday ,16 February

Home built on sand castles-style costs $8m

GMT 05:15 2017 Tuesday ,21 February

Omega 3 can reduce asthma cases

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 19:10 2017 Friday ,17 February

Hats, scarves add beauty to women
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