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Argentina at risk of default after US court ruling on debt
The Telegraph ^ | 11/22/2012 | Garry White

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, Argentina’s 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 Argentina’s 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 ...


TOPICS: Business/Economy; Crime/Corruption; Foreign Affairs; News/Current Events
KEYWORDS:

1 posted on 11/22/2012 8:46:08 PM PST by bruinbirdman
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To: bruinbirdman

Pay up, you mooching Argentina Democrat scumbags.


2 posted on 11/22/2012 8:50:00 PM PST by Lancey Howard
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To: bruinbirdman

“Lizard neck” is going down!


3 posted on 11/22/2012 8:51:36 PM PST by WellyP (question!)
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To: bruinbirdman

‘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?


4 posted on 11/22/2012 9:06:17 PM PST by fhayek
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To: bruinbirdman

It’s time for us to default. Hopefully no one will lend us money again.


5 posted on 11/22/2012 9:08:50 PM PST by St_Thomas_Aquinas (Viva Christo Rey!)
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To: St_Thomas_Aquinas

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.
Idiots!


6 posted on 11/22/2012 9:21:53 PM PST by himno hero (hadnuff)
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To: bruinbirdman

It’s just a few billion bucks ... can’t “Helicoptor Ben” just print it up for them?


7 posted on 11/22/2012 9:32:31 PM PST by The Duke
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To: bruinbirdman

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.


8 posted on 11/22/2012 9:40:07 PM PST by RegulatorCountry
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To: The Duke

You jest but I wouldn’t rule it out.


9 posted on 11/22/2012 9:41:26 PM PST by RegulatorCountry
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To: fhayek

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.


10 posted on 11/22/2012 10:20:51 PM PST by who_would_fardels_bear
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To: All

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.

Bitch.


11 posted on 11/22/2012 11:39:13 PM PST by Rodney Dangerfield ("Hate standing in line at the Post Office? - wait until ObamaCare is implemented.")
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To: bruinbirdman

Why does the MSM always show a ten year old picture of lizardneck?


12 posted on 11/23/2012 12:15:59 AM PST by Bon mots (Abu Ghraib: 47 Times on the front page of the NY Times | Benghazi: 2 Times)
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To: bruinbirdman

I can easily see 0bama treating the holders(CERTAIN holders) of our debt in the same way.


13 posted on 11/23/2012 1:05:06 AM PST by KoRn (Department of Homeland Security, Certified - "Right Wing Extremist")
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To: bruinbirdman

Why do these geniuses at the hedge funds lend money to Argentinia in the first place? Suckers deserve to get cleaned out.


14 posted on 11/23/2012 4:38:59 AM PST by Moltke ("I am Dr. Sonderborg," he said, "and I don't want any nonsense.")
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To: bruinbirdman
“All we need now is for [Judge Thomas] Griesa to send us the Fifth Fleet,” said Hernán Lorenzino.

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...

15 posted on 11/23/2012 4:55:41 AM PST by Freeport (The proper application of high explosives will remove all obstacles.)
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To: Freeport

Pity. Argentina had such promise...


16 posted on 11/23/2012 5:34:04 AM PST by Eric in the Ozarks (In the game of life, there are no betting limits)
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