Arab Today, arab today new year could resolve argentine debt debacle or not
Last Updated : GMT 23:57:51
Arab Today, arab today
Arab Today, arab today

New year could resolve Argentine debt debacle, or not

Arab Today, arab today

Arab Today, arab today New year could resolve Argentine debt debacle, or not

A woman walks past grafitti against so-called 'vulture funds'
Buenos Aires - AFP

The fine print Argentina blames for failed negotiations with disgruntled creditors expires Thursday, theoretically clearing the way for a deal to lift the country out of default -- if the two sides want it.
Even as it careered toward its second debt default in 13 years last July, Argentina insisted it could not swerve away from the precipice because of something called a RUFO, or Rights Upon Future Offers clause.
The RUFO clause is part of Argentina's 2005 and 2010 debt restructuring agreements, hard-fought deals the South American country reached with creditors who agreed to take steep losses on their bonds after it defaulted on $100 billion in debt during its 2001 economic crisis.
The clause entitles all bondholders to equal treatment.
According to Buenos Aires, that meant it had no choice but to defy a US federal court ruling in favor of two American hedge funds demanding full payment on the defaulted Argentine bonds they bought for pennies on the dollar.
Blocked by the court from paying its restructured debt until it settles the $1.3 billion dispute with the hedge funds, Argentina defaulted again on July 30.
Now, with the RUFO clause expiring at the end of the year, the stage may be set for a deal.
But the two sides appear in no hurry to negotiate.
"The Argentine government has no incentive to launch a speedy negotiation because it would have to pay more, and that carries too high a cost in political terms," said Matias Calugati, chief economist at Argentine consultancy Management & Fit.
Paradoxically, President Cristina Kirchner's government has racked up significant political capital from the debt dispute, attacking the holdout creditors as "vulture funds" and US federal Judge Thomas Griesa as "contemptuous" of Argentine sovereignty.
"Waving the flag of 'the nation versus the vultures' has benefited the government, and retreating a step could cost it dearly," Calugati told AFP.
Argentina, Latin America's third-largest economy, holds general elections in October 2015 that will choose Kirchner's successor after 12 years of shared rule by her and her late husband Nestor.
With a hard-fought campaign on the horizon, Kirchner -- who is not eligible for re-election -- may see scoring political points for her allies as more important than settling the debt dispute.
The urgency of resolving the debt standoff has decreased since an $11 billion currency swap with China, boosting its dwindling foreign reserves to $31 billion and removing pressure to return to the capital markets it has been frozen out of since 2001.
- Patient 'vultures' -
The so-called "vulture funds" meanwhile appear content to play the waiting game.
The funds -- Aurelius Capital Management and billionaire speculator Paul Singer's NML Capital -- have their eye on the elections, too, especially the presidential bid by the business-friendly mayor of Buenos Aires, Mauricio Macri.
"Several opposition candidates have already put forth their strategy: pay up. So why rush to negotiate with the current government?" said Ramiro Castineira of consultancy Econometrica.
creditors who hold the remnants of Argentina's 2001 debt, 93 percent signed up for the restructuring deals -- taking losses of up to 70 cents on the dollar -- while six percent neither accepted restructured bonds nor joined the lawsuit by Aurelius and NML.
As the clock continues to tick, the two hedge funds may persuade more of those holdouts to join their cause, said Castineira.
Argentina is closing out a rough year, with an 18 percent currency devaluation in January, spiraling inflation that stands at 30 percent or more, and an economic slowdown.
The government tried to circumvent Judge Griesa's ruling by paying its restructured debt in Buenos Aires instead of New York, but the offer fell flat when creditors shunned it.
The government says it will pay all its creditors, but not at any price.
"Argentina wants to and can pay," Economy Minister Axel Kicillof said recently.
"The problem isn't coming from Argentina, it's coming from the 'vultures' that have never wanted to negotiate. They want to get their full 100 percent and bring the nation to its knees."

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 new year could resolve argentine debt debacle or not Arab Today, arab today new year could resolve argentine debt debacle or not

 



Arab Today, arab today
Arab Today, arab today Nasima Gamei revives Algerian heritage in jewelries

GMT 22:42 2017 Thursday ,23 February

Nasima Gamei revives Algerian heritage in jewelries
Arab Today, arab today Saudis await visitors but will they come?

GMT 11:54 2017 Thursday ,23 February

Saudis await visitors but will they come?
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 Blind sheikh buried in Egypt

GMT 06:32 2017 Thursday ,23 February

Blind sheikh buried in Egypt
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
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 UK appoints 1st Scotland Yard chief in 188 years

GMT 05:14 2017 Thursday ,23 February

UK appoints 1st Scotland Yard chief in 188 years
Arab Today, arab today Ex-yoga missionary unleashes rage

GMT 12:16 2017 Thursday ,23 February

Ex-yoga missionary unleashes rage
Arab Today, arab today Pluto's unruly moons

GMT 06:31 2015 Thursday ,04 June

Pluto's unruly moons
Arab Today, arab today Tesla back into red but revenue grows

GMT 07:27 2017 Thursday ,23 February

Tesla back into red but revenue grows
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 Salma Rashid happy for 'A Whisper of Love'

GMT 05:19 2017 Tuesday ,21 February

Salma Rashid happy for 'A Whisper of Love'
Arab Today, arab today Milan laughs while Rome cries

GMT 10:28 2017 Wednesday ,22 February

Milan laughs while Rome cries

GMT 06:41 2017 Monday ,20 February

Janat pleased for issuing 'Good Morning'

GMT 12:35 2017 Tuesday ,21 February

63-Year-Old Woman Delivers Baby

GMT 20:02 2017 Tuesday ,21 February

Nohan Seyam designs beautiful accessories

GMT 15:53 2017 Tuesday ,21 February

Small ponds have outsized impact

GMT 23:29 2017 Thursday ,16 February

Home built on sand castles-style costs $8m

GMT 07:51 2017 Wednesday ,22 February

Mom's immune system accepts babies

GMT 17:46 2017 Saturday ,18 February

Tourist guide reveals methods of tourist attractions

GMT 13:12 2015 Saturday ,09 May

Sheikh Sultan opens Sharjah Centre

GMT 12:22 2017 Monday ,20 February

Kanye West puts hijab-wearing model
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