Griesa’s decision, in the end, did not go into effect, as the attorneys for the country from the firm of Cleary Gottlieb, got a hold applied while awaiting the decision of the Court of Appeals, which should rule shortly.

Telam

Obama backs Argentina in its fight against the vulture funds

Friday, April 6, 2012


The government of the United States asked the Court of Appeals of that country to reverse rulings issued by Judge Thomas Griesa in favor of a vulture fund, which ordered the country in February to pay interest on the debt bonds from the swaps of 2005 and 2010, Assistant Secretary of Finance Fabian Dall`O confirmed to Telam.


Taking the same position was the U.S. banking association, Clearing House Association,  Dall`O said, which has among its members JP Morgan, Bank of America, Citigroup New York Mellon, Deutsche Bank, and Wells Fargo, among others.


In a brief called an "Amicus Curiae", the U.S. government said that Greisa’s interpretation of a clause in the contract “could allow a lone creditor to frustrate a restructuring plan that has international support, and with that could undermine decades of efforts that the United States has made to promote a system of cooperation and resolution of the sovereign debt crisis.”
In this manner, the United States backed Argentina in its fight against the vulture funds in the courts of that country, and in particular against a decision by Judge Thomas Griesa issued on February 23 in favor of the funds NML, of Elliot, and Aurelius.


Dall`O  said that the support from the United States reaffirms that “Argentina is very calm about this process, and there is no room for doubt that the ruling of the Court of Appeals will be favorable for the country in this case.”


The official also revealed that there would be another filing before the Appeals Court, in parallel to the U.S. Justice Department, by Clearing House, “which was favorable to Argentina and does nothing more than confirm the Argentine position in the face of the appeal.” 


That banking entity is the oldest in the United States and represents the 17 largest banks in that country, which hold about half of all deposits.


Thus, he said, the U.S. Justice Department’s text “puts into evidence the contradiction of this kind of decision (by Griesa on February 23) that we are convinced that the Appeals Court will reverse.”


Griesa’s decision, in the end, did not go into effect, as the attorneys for the country from the firm of Cleary Gottlieb, got a hold applied while awaiting the decision of the Court of Appeals, which should rule shortly.
In fact, Argentina was able to make payment last March without problems on the interest for the Par bond, issued in the debt swap with creditors.


"Argentina’s payments are being made as normal,” Dall`O said. 


The U.S. Justice Department argues in the legal brief that it does not “tolerate nor excuse” Argentina from payment these creditors.


However, it said that the orders issued by Griesa are of an “inadmissible scope” and harmful to U.S. foreign relations.