Skip to comments.Argentina at risk of default after US court ruling on debt
Posted on 11/22/2012 8:45:46 PM PST by bruinbirdman
Argentina is at risk of defaulting on $24bn (£15bn) of debt after hedge funds were awarded more than $1.3bn by a US court, a move which its economy minister called legal colonialism.
All we need now is for [Judge Thomas] Griesa to send us the Fifth Fleet, said Hernán Lorenzino.
However, New York District Court Judge Grisa was firm. Argentina owes this and owes it now, he said. After 10 years of litigation this is a just result.
A deadline for payment was set for December 15.
Cristina Fernandez de Kirchner, Argentinas outspoken president, had vowed that the government will not pay one dollar to the funds. Payment could divert money from other bondholders, tipping the nation into a technical default.
The ruling relates to the previous default cycle. Judge Griesa rejected Argentinas request to keep a previous order halting payments to so-called holdout investors that did not participate in two bond exchanges in 2005 and 2010.
The ruling effectively means that holders of defaulted debt have to be treated the same as those investors who participated in the restructuring.
These investors include NML Capital and Aurelius Capital Management, which have been holding out after rejecting the terms of previous debt agreements. Mr Lorenzino called the hedge funds vultures.
To pay the vultures is not only unfair but illegal in terms of our internal rules, he said. We will continue to defend the position of Argentina in all forums and with all available legal instruments.
The court victory has sparked fears the country could be plunged into a default spiral similar to the 1999-2002 crisis
(Excerpt) Read more at telegraph.co.uk ...
Pay up, you mooching Argentina Democrat scumbags.
“Lizard neck” is going down!
‘previous default cycle’. Do we live in the age of ‘default cycles’? You borrow, you default, you restructure. In the end, you are just burning up productive capital, but to what end?
It’s time for us to default. Hopefully no one will lend us money again.
What? They want to be Africans? Incompetent recipients of aid? They are just like Africa, sitting on huge resources but cannot asemble the where-with-all to harness the resources.
It’s just a few billion bucks ... can’t “Helicoptor Ben” just print it up for them?
This sort of brinksmanship at the present time is not a good thing for anyone involved except the hedgies who refused to settle a decade ago. It wouldn’t take much to set off a chain reaction, everyone is destabilized. Which is worse, hedge funds taking the haircut everybody else did or risking bringing down the whole house of cards? I don’t pretend to know the answer but I suspect some backdoor arrangements will be made to make this go away.
You jest but I wouldn’t rule it out.
Either the second groups of investors are really stupid or they got some sort of credit default swap set up so that they either get their money from the Argentinians or from a retirement fund that was hoodwinked into buying the CDS’s.
She and her deceased husband are crooks.
Argentina has a law that no one can serve two consecutive terms as President, so they would both take turns serving two terms as President, until her husband died.
Now she is trying to get the law overturned so she can be President for life.
Why does the MSM always show a ten year old picture of lizardneck?
I can easily see 0bama treating the holders(CERTAIN holders) of our debt in the same way.
Why do these geniuses at the hedge funds lend money to Argentinia in the first place? Suckers deserve to get cleaned out.
That would be the 4th fleet... And I'm good with that...
We'll start by sizing ocean front property...
You all have a real nice day now...
Pity. Argentina had such promise...