diverse Pressemeldungen zu den Vultures

Press Release, Presidencia de la Nacion

Vulture funds campaign, with first and last name

Saturday, July 28, 2012

The ambassador in the U.S., Jorge Arguello, reported in a letter sent to every legislator the smear campaign that is being carried forward by the vulture funds gathered in ATFA, which published full-page ads in two of the most circulated newspapers in the Congress – The Hill and Politico.

“We’ve given a first and last name in the Congress to those responsible for the campaigns that on a regular basis are being pushed by the vulture funds to damage the image of our country. The equation by these speculators is simple: the worse Argentina gets, the better it is for their pockets,” Arguello argued in reference to the letter that was sent out yesterday, with the Argentine ambassador’s signature, to the 535 members of the American Congress.

“I’m writing to you in relation to the defamation campaign against Argentina which has recently intensified and is led by Robert Shapiro in the name of American Task Force Argentina (ATFA), the entity backed by the vulture funds NML and EM Ltd.,” Arguello wrote.

“Their only purpose is to confuse those responsible for policy, as well as the general public by generating the false impression of a government characterized by a poor management of every issue, and a country in decline, as said by Paul Singer (who controls part of NML Fund): ‘Our main objective is to find cases of bankruptcy where our capacity to control or influence the process is what determines the value.’ They will only have that capacity if those responsible for policy base it on the image that these funds have constructed through the manipulation of information,” he added.

Also, the ambassador said that “the attacks by the vulture funds represents a desperate attempt to save a speculative and unwise maneuver from the financial point of view. Their selfish interests run against those of U.S. citizens. In effect, Mr. Paul Singer made a fortune through derivative financial instruments, one of the causes of the financial crisis of 2008 in the United States. The example of Mr. Kenneth Dart (EM Ltd. Fund) comes out even more evident: he renounced his U.S. citizenship and established his legal domicile in the Cayman Islands with the goal of avoiding payment of millions of dollars in taxes.

Finally, Arguello pointed out that “since I arrived I have maintained a constructive dialogue with members of the U.S. Congress, which has not allowed these spurious interests dictate what actions they should take. Thanks to this dialogue, we have made evident what the true interests of the vulture funds are, as well as the efforts made by Argentina over the last decade to honor its obligations. Argentina reached a common agreement on a solution regarding 92% of its debt. On the other hand, more than 90% of the lawsuits filed in U.S. courts against Argentina correspond to non-U.S. citizens or private entities. The majority of the complaints come from the vulture funds, who are not interested in reaching a viable solution,” he said.

“The vulture funds have not had success in their speculative efforts. That says a lot around the solidness of U.S. principles and values, and shows not only how isolated those funds are, but also it puts in evidence the commitment and efforts that Argentina has made to honor its obligations, on the bases of fairness and non-discrimination. Therefore, I hope to be able to continue working with you for the benefit of our peoples,” the ambassador concluded.

Telam

Arguello denounces the actions of the vulture funds against Argentina

Saturday, July 28, 2012

The ambassador in the United States, Jorge Argüello, sent this Friday a letter to 535 members of the U.S. Congress, detailing “the defamation campaign being conducted by the vulture funds gathered together in ATFA (American Task Force Argentina), against Argentina”.

This way, “we’ve given a first and last name in the Congress to those responsible for the campaigns that on a regular basis are being pushed by the vulture funds to damage the image of our country”, Arguello said through a statement.

In the letter, the ambassador told all of the U.S. representatives that “the defamation campaign against Argentina which has recently intensified and is led by Robert Shapiro in the name of American Task Force Argentina (ATFA), the entity backed by the vulture funds NML and EM Ltd.”

He said that “their only purpose is to confuse those responsible for policy, as well as the general public by generating the false impression of a government characterized by a poor management of every issue, and a country in decline, as said by Paul Singer (who controls part of NML Fund): ‘Our main objective is to find cases of bankruptcy where our capacity to control or influence the process is what determines the value.’”

However, the Argentine official said, “they will only have that capacity if those responsible for policy base it on the image that these funds have constructed through the manipulation of information.”

For his part, Arguello said to the American representatives that “the attacks by the vulture funds represents a desperate attempt to save a speculative and unwise maneuver from the financial point of view,” as their “selfish interests run against those of U.S. citizens.”

In fact, Paul Singer “Paul Singer made a fortune through derivative financial instruments, one of the causes of the financial crisis of 2008 in the United States”, but “example of Mr. Kenneth Dart (EM Ltd. Fund) comes out even more evident,” who “renounced his U.S. citizenship and established his legal domicile in the Cayman Islands with the goal of avoiding payment of millions of dollars in taxes.”

Also, the diplomat pointed out that thanks to the “constructive dialogue” maintained since his arrival in Washington with members in the Capitol, it has been “evident what the true interests of the vulture funds are, as well as the efforts made by Argentina over the last decade to honor its obligations.”

On one side, Argentina “reached a common agreement on a solution regarding 92% of its debt”, while on the other “more than 90% of the lawsuits filed in U.S. courts against Argentina correspond to non-U.S. citizens or private entities.”

As such, “the majority of the complaints come from the vulture funds, who are not interested in reaching a viable solution”, said the letter from the top Argentine representative in the United States.

Lastly, Argüello said that the vulture funds “have not had success in their speculative efforts,” and “that says a lot about the solidness of U.S. principles and values.”

In fact, this “shows not only how isolated those funds are, but also it puts in evidence the commitment and efforts that Argentina has made to honor its obligations, on the bases of fairness and non-discrimination.”

(Note: this story ran in its entirety in El Patagonico on Sunday)

Tiempo Argentino (InfoNews)

From Arguello to the congressmen

By Tiempo Argentino

The campaign of the Argentine ambassador in the US against the vulture funds

The ambassador in the United States, Jorge Argüello, sent this Friday a letter to 535 members of the U.S. Congress to detail the names of those behind the defamation campaign against Argentina brought forward by the vulture funds. In the text, it was said that those mainly responsible are Robert Shapiro, representative of ATFA, the association that is made up of the funds, and Kenneth Dart and Paul Singer, heads of EM Ltd and NML, respectively.

"Their only purpose is to confuse those responsible for policy, as well as the general public by generating the false impression of a government characterized by a poor management of every issue, and a country in decline", said Aguello in the text. For this he gives the example of a phrase from Singer, who pointed out that his main objective is to find bankruptcy cases to control or influence in the processes of debt restructuring.

With the goal of responding to the congressmen, Arguello also says that the selfish interest of the funds goes against those of US citizens, as they have already made fortunes through derivative financial instruments, one of the causes of the 2008 financial crisis. “The example of Dart is even more evident: he renounced his citizenship and established his domicile in the Cayman Islands with the goal of avoiding payment on millions in taxes,” he said.

Lastly, he pointed out the failure of the speculative funds and said that this shows a great deal “about the solidness of American principles and values” and shows the isolation of the funds adn the commitment from Argentina over its obligations.

(NOTE: This piece ran in its entirety on Cronista.com on Sunday)

Clarin

Arguello, in campaign against the vulture funds in the United States

Sunday, July 29, 2012

The ambassador sent a letter to members of Congress of that country defending Argentina’s position.

The Argentine ambassador in the United States, Jorge Arguello, is bringing forward a mission against the vulture funds that didn’t enter the debt swaps and are continuing to litigate against the country to collect on bonds in default. Last Friday, the official sent a letter to the 535 members of the American Congress explaining that “the defamation campaign against Argentina which has recently intensified and is led by Robert Shapiro in the name of American Task Force Argentina (ATFA), the entity backed by the vulture funds NML and EM Ltd.”

With that document, Arguello argues that he has “given a first and last name in the Congress to those responsible for the campaigns that on a regular basis are being pushed by the vulture funds to damage the image of our country.”

The official said that “their only purpose is to confuse those responsible for policy, as well as the general public by generating the false impression of a government characterized by a poor management of every issue, and a country in decline”. Argüello railed in the letter against Paul Singer (of the NML fund) and Kenneth Dart, of EM Ltd.

gute Kalkulation des Argentinien, Republik EO-Bonds 2005(24-33) Disc.

Abgeschickt von Karl Napf am 05 Juli, 2012 um 16:25:11:
Argentinien, Republik EO-Bonds 2005(24-33) Disc.
(ISIN: XS0205545840, WKN: A0DUDG)
Zinszahlung derzeit (bis Ende 2013):
- 5,45% in Cash
- 2,37% in Poolfaktor
- halbjährliche Zahlung => Kupon nominal 2,725%
(ab 2014: 7,82% in Cash, 0% in Poolfaktor)
Angesammelter Poolfaktor vor der aktuellen Zinszahlung: 131,276958%;
aktuelle Zinszahlung: 3,577297% des Nominalwertes (für 6 Monate) zum 30.06.2012
Poolfaktor steigt nun auf 131,276958% * (1 + 0,0237/2) = 132,83259%;
nächste Zinszahlung: 3,619688% des Nominalwertes (für 6 Monate) zum 31.12.2012.
Maximaler Poolfaktor von 137,610968% wird erreicht Ende 2013;
danach Zinszahlung von 7,82% * 137,610968% / 2 = 5,380589% pro Halbjahr bis Laufzeitende.
Tilgung in 20 Raten (halbjährlich, 30.6.2024 - 31.12.2033)
zu je 137,610968% / 20 = 6,880548% des Nominalwertes.
Aktueller Kurs der Anleihe: 75,00% Geld / 78,25% Brief (Börse Frankfurt).
(dirty-Notierung; bereinigt um den Poolfaktor: 57,13% Geld / 59,61% Brief)
Aktuelle Rendite der Anleihe zum Briefkurs: 15,4% brutto = 14,2% netto
(bei 25% Abschlagssteuer + 5,5% Soli und 15% fiktiver Quellensteuer auf die Zinsen;
Berechnung via XINTZINSFUSS / Open Office auf alle Zahlungsströme ab heute)
Aktueller Wert des Argentinien-Tauschpakets zum Geldkurs:
(in Discounts + GDPs inklusive aller Zinsen): 60,49%

The inflation-linked Argentine bonds due in 2033 yield 14.3 per cent plus the official annual inflation rate, according to Bloomberg

High quality global journalism requires investment. Please share this article with others using the link below, do not cut & paste the article. See our Ts&Cs and Copyright Policy for more detail. Email ftsales.support@ft.com to buy additional rights. http://blogs.ft.com/beyond-brics/2012/07/16/argentina-inflation-linked-peso-bonds-take-a-dive/#ixzz21qTN6JcR

Argentina: inflation-linked peso bonds take a dive

July 16, 2012 9:36 pm by Ian Mount

2 inShare3

1

Argentina’s clampdown on foreign currency purchases has claimed another victim: peso-denominated bonds. Argentina’s inflation-linked peso bonds have lost an average of 15 per cent so far this year, reports Bloomberg, quoting data compiled by Barclays.
On the surface, the bonds certainly look attractive. The inflation-linked Argentine bonds due in 2033 yield 14.3 per cent plus the official annual inflation rate, according to Bloomberg. But that plus is the problem. The annual inflation rate as reported by INDEC, the national statistics agency, sits at 9.9 per cent. But many private economists say that INDEC has woefully underreported inflation since the Argentine government intervened in INDEC in 2007, and that the current annual rate is closer to 25 per cent.
Under that rate-fiddling scenario, a bond at 14.3 per cent plus official inflation looks far less attractive to investors, which may explain why inflation-linked bonds in nearby Brazil, which yield a much lower 4.6 per cent plus the official inflation rate, have gained 3.4 per cent in value this year while Argentina’s have lost.
Worse for Argentine bonds, many investors expect unofficial inflation to increase, making them even less willing to buy inflation-linked peso bonds. Enrique Alvarez, the head of Latin America fixed-income research at IdeaGlobal in New York, told Bloomberg that:

The markets see that the gap between the real inflation and the reported one will widen this year and that makes them less willing to take CPI [Consumer Price Index]-linked bonds.

Restrictions on buying dollars also steer bond investors away from the peso bonds. As we reported recently, the Argentine central bank no longer allows people to convert pesos to dollars for savings, making it almost impossible to get foreign currency in Argentina. This means that investors who want to cash in their peso bonds for buy foreign currency have to buy it on the black market at a high premium (6.21 versus 4.57 pesos to the dollar, for example). Paul McNamara, who manages emerging-market debt at GAM Investment in London, told Bloomberg that:

When we buy assets in Poland or Mexico or South Africa, we purchase the local currency to buy assets and, when we sell them, we can freely convert the currency back into dollars. That’s not the case in Argentina. To the extent there are more problems turning peso assets into dollars abroad, the less desirable peso assets are going to be.

This hammering being given to the peso bonds, as well as the spread between the official and black market exchange rate, have led many investors (and Argentine locals) to expect a devaluation, albeit a gradual one, in upcoming months. It has also led some local investors to buy dollar-denominated bonds, which on the surface offer little return but when calculated at the black market rate offer much more in pesos.
“As buying dollars is impossible and fixed-term deposit interest rates are so low, the people are attracted by assets that let them take refuge in foreign currencies,” Paula Premrou, director of Portfolio Personal, told Clarín, Argentina’s largest newspaper.
That refuge is at least better than stuffing ones’ currency in the mattress, and certainly more comfortable when it comes time to sleep.
Related reading:Tourism in Argentina: feeling the squeeze, beyondbrics
Argentines’ latest weapon against currency controls? Shopping abroad, beyondbrics
Argentina: more dollar restrictions, beyondbrics
Dollar curbs have Argentine vintners crying in their cups, beyondbrics

http://blogs.ft.com/beyond-brics/2012/07/16/argentina-inflation-linked-peso-bonds-take-a-dive/#axzz21qRAamcz

Mon Apr 18, 2011 11:44am EDT

New Argentine CPI to adjust inflation-linked bonds-report

* Government inflation data widely discredited
* Minister say national CPI to replace current index
* Inflation-linked bonds to be tied to new CPI
BUENOS AIRES, April 18 (Reuters) - Argentina's new nationwide consumer price index (CPI), developed with help from the International Monetary Fund, will be used to adjust inflation-linked bonds, local media reported on Monday.
The government of President Cristina Fernandez is widely suspected of underreporting consumer price rises via Argentina's CPI, which measures inflation only in the greater Buenos Aires area.
About a quarter of Argentina's debt is indexed to inflation. Currently, price data collected in the Buenos Aires Metropolitan area feeds into the so-called CER figure BCRA25 used to calculate payments on inflation-linked bonds.
Issuing low inflation numbers has the effect of reducing payments on the government's inflation-linked debt. It is not yet clear whether the new CPI index will increase the inflation rate.
"The new (national) index will replace the current one that only takes the (Buenos Aires) Metropolitan area into account," Economy Minister Amado Boudou said on the sidelines of the IMF and World Bank spring meetings in Washington in comments published by daily El Cronista.
"The index will serve the CER and all of the contracts in the country," he added.
The government asked the IMF to help develop a new, nationwide consumer price index late last year. Data experts ended a mission last week in Argentina and left recommendations on how to design the new price gauge. [ID:nN11116334]
Argentina's official inflation data has been widely discredited for being too low since January 2007, when the government appointed a political ally to head the consumer price unit at the INDEC national statistics institute.
INDEC's technical director said in November that holders of Argentina's inflation-indexed bonds would not benefit from the new CPI. [ID:nN24262702]
According to a report published by local daily La Nacion on Monday, the new nationwide CPI "will adjust inflation-linked bonds which were the market's favorite before the index was distorted."
Annual consumer inflation is estimated privately at around 25 percent, one of the world's highest rates. The government reported 9.7 percent inflation in the 12 months through March ARECI09
Dollar-denominated inflation linked Boden 2014 bonds ARBODEN14D=RASL fell 1.32 percent in early trading on Monday, pressured by global economic concerns.
Despite asking for help with the new inflation index, the government still refuses to let the Fund carry out annual economic reviews routinely undergone by IMF member nations.[ID:nN06208420]
Argentina has barred the IMF from doing the revision since 2006, arguing that the Fund's policies helped cause the country's 2001-2002 economic crisis and massive debt default.
(Reporting by Guido Nejamkis; Writing by Luis Andres Henao; Editing by Andrew Hay)

http://www.merval.sba.com.ar/Vistas/Cotizaciones/TitulosPublicos.aspx

http://www.merval.sba.com.ar/Vistas/Cotizaciones/TitulosPublicos.aspx

The Awesome Pari Passu Hearing posted by Anna Gelpern

The Awesome Pari Passu Hearing

posted by Anna Gelpern

The Second Circuit argument in NML v. Argentina was awesome--I was at the edge of my seat the whole time. My takeaway after the hearing is that even though Argentina got the brunt of the yelling, it would be relatively straightforward for the court to rule in its favor (after yelling some more). In contrast, ruling in favor of the creditors would require the court to make some pretty hard new law, and overcome big policy challenges. This does not add up to a projection for Argentina--I think some or all of the judges would love to rule against it if they possibly could--but methinks it would be harder after today than before.

Recall the issue is whether the District Court properly granted an injunction directing Argentina not to pay its restructured debt unless it also pays the plaintiff holdout creditors pro rata. In this case, pro rata would mean that the restructured debt gets 30 or so cents on the dollar (their new contract), while the holdout debt gets 100 cents (the old contract). At the heart of the case is the meaning of the pari passu clause in sovereign debt contracts, and whether the clause (whatever it means) could serve as a basis for an injunction against a foreign sovereign.
1. On the meaning of pari passu, there was a huge amount of going around in circles. Argentina maintained that refusing to pay its debt year after year and enacting a "Lock Law" that blocked the government from settling with the holdouts did not amount to subordination. There was some giggling behind me when Argentina's counsel insisted that laws, statements, and SEC filings all saying that holdouts get zero while everyone else gets paid in full did not amount to subordination. The U.S. Government was no help, arguing that selective nonpayment did not breach pari passu, but then demurring on the Lock Law. And Judge Raggi had a neat theory of prolonged nonpayment as constructive subordination (six months is nonpayment, six years subordination ... six hundred and sixty six apostasy?). At the end of the day, even as there was zero doubt that Argentina had done the plaintiffs wrong, the pari passu clause was about as murky as at the start. Even so, if NML wins, it will be on the meaning of pari passu and the Lock Law, with a nod to equitable discretion.
2. There were lots of hard questions about injunctive relief. Again, Judge Raggi put it crisply: under the District Court ruling, Argentina had the choice of paying no one, paying everyone in full, or paying everyone pro rata. Strictly speaking none of this involves seizure of immune sovereign stuff. However, even the nonpayment option looks a lot like a restraint on Argentina's money in Argentina. The conversation somehow kept coming back to the fact that under the injunction, Argentina could spend its money as it pleased--it could buy drugs, alcohol, and cigarettes--but could not pay its restructured debt without paying NML pro rata. This would make for a funny sort of partial asset immunity, unless the court adopted the plaintiffs' theory that the injunction only operated on Argentina's person ("Don't do it!"), not its money. Here the U.S. did help Argentina, reinforcing the point that the Foreign Sovereign Immunities Act did not provide for sliding scale immunities.
In the end, both sides engaged in form-substance arbitrage--Argentina with nonpayment/subordination, and NML with injunction/attachment.
3. The judges clearly struggled with the prospect of affirming a feckless injunction that would be ignored just like so many other judgments and orders issued against Argentina. NML's counsel made a startling statement--twice--that if the injunction were to stand, NML would use it to block U.S. financial institutions from "aiding and abetting" Argentina servicing its restructured bonds. Now we know that this is all about finding a non-immune target--and the judges face the prospect of New York's financial industry traipsing through their courtroom protesting aiding and abetting charges. (Counsel also said that Argentina might feel bad about ignoring the injunction or being in contempt of court--not sure anyone bought it. He might have mentioned the recent U.S. trade sanctions for ignoring ICSID rulings.) Previewing the next battle, Argentina was pressed about the status of the bond trustee--and got to say that the the trustee was the agent of the bondholders, not Argentina. Sometimes it helps to get picked on.
4. NML's counsel probably convinced the court that going unpaid while others get paid was an irreparable injury distinct from simply going unpaid. Argentina argued that the sole contractual remedy for breaching pari passu was acceleration. Assuming Argentina does not pay the accelerated amounts (as it has not), this yields one consolidated and reparable injury, nonpayment of money. Although NML generally did well here, this line of argument highlighted the fact that it has not reduced its claim to a judgment, precisely to take advantage of the covenant that would have been merged into a money judgment. That seemed to cause some unease on the bench, with few answers from NML. On the other hand, Argentina raised a few eyebrows insisting that an utterly uncollectable money judgment was "reparable" -- presumably by adding some uncollectable interest.
5. Then there were the puzzling ones, from the size and import of Argentina's central bank reserves "salted away in Switzerland," (was that BIS???), to the magical effect of collective action clauses (I hear they cure the common cold). ... the intractable ones, like the precise universe of remaining claims against Argentina, including past due interest ... and the subliminal tug-of-war over what to call restructured debt (NML referred to "exchange bondholders," presumably to stress voluntary participation, while Argentina and some judges said "discount bondholders," perhaps recalling the haircuts they had suffered). Both Argentina and, weirdly, NML, talked down investors who bought debt at a discount (Argentina was talking about NML, NML about the exchange participants).
Bottom Line: To rule for Argentina, the court would have to profess outrage at its many sins, and express regret about the state of sovereign immunity. To rule for NML, the court would have to decide the meaning of the pari passu clause (at least as it applies to the Lock Law), decide that failure to pay pari passu was an irreparable injury distinct from failure to pay, decide that telling Argentina how to spend its Treasury funds did not amount to restraining immune property in Buenos Aires, and get comfortable with hearing a slew of aiding and abetting cases against New York banks--all this before getting to the U.S. Government contention that creating a pari passu remedy would give holdouts a veto and disrupt sovereign restructurings the world over (that last one depends on the court's reading of the Lock Law). It is plausible--and would be incredibly interesting and important--but seems hard.
Real Bottom Line: Sovereign immunity without bankruptcy makes for incredibly uncomfortable law. And everyone should learn Latin.

July 24, 2012 at 1:01 AM in Sovereign Debt

He shot back at the vulture funds and highlighted the decision of the US Supreme Court in favor of Argentina

Tiempo Argentino

Lobbyist must not dominate a country’s agenda

Sunday, July 22, 2012

By Nicolas Furfaro

He shot back at the vulture funds and highlighted the decision of the US Supreme Court in favor of Argentina

The Argentine ambassador in the United States, Jorge Arguello, pointed directly at the vulture funds and accused them by name of being speculators that are hiding behind the campaign against Argentina. Also, he explained the strategies that they use to hide, their political relationship to the Republican Party and the desperation that they show after repeated failures of their attacks.

–There is always talk of “vulture funds” in general, but there are proper names behind them like Robert Shapiro, Paul Singer and Kenneth Dart. Who are these men that lead the speculative tank?

–Robert Shapiro was assistant secretary of Commerce for Economic Affairs in the Clinton administration, and today, in exchange for a price, he is the spokesman for the “investors” gathered together in the pressure group American Task Force Argentina (ATFA). When the ex-president had the option of meeting with Dart again as a donor to the campaign he ruled it out, arguing that he didn’t want to get near him. So, the real owners of the vulture funds are people like the multimillionaire Kenneth Dart, of the fund EM Ltd., and Paul Singer, who uses MNL (sic) Capital and other firms created ad hoc to litigate on dirty and misruled issues even for Wall Street, and that maintains Elliot Management separately, which today manages some US$12 billion.

–These people are always well-received in the Republican Party, what are the relations between both actors?

–A clear example comes from Singer, who operates in the political arena to trade favors. In the 1990s he was the largest donor to the campaign of New York Mayor Rudolph Giuliani, who he also supported as a presidential primary candidate. He’s also the biggest donor to the New York police and one of the biggest financiers of the Republican Party. Today he is one of the few donors of the maximum amount of one million dollars to the campaign of candidate Romney and also gave money to the Governor of New Jersey, Chris Christy (sic), and the star senator from Florida, Marco Rubio, considered possible vice presidential candidates.

–ATFA has already spent three million dollars lobbying, has this amount translated into good results for the vulture funds?

–Despite its desperate attempts, ATFA has only convinced a handful of legislators to push measures against Argentina, like the “Judgment Evading Foreign States Accountability Act of 2011”, supported by less than 7% of the representatives and only its chief sponsors in the Senate. The caricature of Argentina that Shapiro and ATFA make not only speaks to their lack of knowledge but their impotence that is beginning to be generated among the vulture funds and their public representatives, the growing isolation that they suffer through the passage of time and it’s being demonstrated in the facts of the commitment of Argentina to honor every one and all of its debts.

–What is the final goal of the speculative practices of MNL (sic) Capital and EM Ltd., that didn’t accept any of the restructuring proposals made by Argentina?

–They drop down onto economies in turmoil to seek for cents to collect 100% of their value plus interest through default. It’s evident that for those funds their only option now is to weaken the country as much as they can to try to impose conditions. According to the vulture funds, Argentina owes US$3.5 billion “to the Americans” (sic)* and refuse to pay, but that figure is a nominal amount on claims in lawsuits in the United States and only one in ten of those dollars are demanded by citizens of the United States. The rest are from Americans that chose to establish their residence in other countries to evade taxes. Believe it or not, it is from that place that they are suing for 5000% of their initial investment in debt bonds. Around 90% of all the cases with a final decision against Argentina in the U.S. courts belong to the vulture funds, domiciled in tax havens.

–You have called them out many times as owners of entities domiciled in tax havens, places from which they attack hide. How do they do it?

–In 1994 Kenneth Dart decided to renounce his U.S. citizenship and adopt it from Belize. At that time he already had a family patrimony of US$3 billion and had shown his first skills. In 1986, the division of assets of the powerful Dart group allowed him to enter the stock market, where he was dazzled by the profits he made. At that time, one of the brothers considered himself harmed by the distribution of assets and filed suit in Michigan. His main fear was that the rest of the family had irregularly moved the company’s money to …. foreign tax havens! In the 1990s, the first “vulture” offensive gained notoriety in Brazil, where with a heavy foreign debt in renegotiation was made from only US$375 million from 4% of the bonds in play, some US$35 billion in nominal value. He sued for US$980 million, but got US$605 million, or 161% of what he’d bet in his speculative maneuver. When after his Brazilian adventure he renounced his U.S. citizenship, market analysts estimated that the Dart Corporation was eluding payment of some US$800 million in taxes through this maneuver. His adventures as an “investor” continued in post-communist Russia with the gigantic privatizations of energy production and services, without forgetting new speculations on foreign debts in default in Peru and Poland. In 2001, it was Argentina’s turn.

–What was the response from the Obama administration and Congress to the strategy that you have led to counter the campaign of the vulture funds?

–We obtained comments praising the usefulness of the information given out to all the political circles of the country and that has generated special interest from the chairmen of the most important committees, both in the Senate and the House of Representatives, which has led to specific meetings about the true situation of the debt and other issues of interest. It has been indispensable to recover the political space also in the area of international relations. The lobbyists and the pressure groups should not be conducting the foreign policy of a country, as big as it is. I think that the ruling of the U.S. Supreme Court clearly follows this concept. It was a strong defeat for the vulture funds.

Overcoming barriers

–What are the state of the negotiations over the difficulties by Argentina in entering with lemons and beef into the United States?

–We are working on the bilateral level, jointly with the interested sectors and the competent agencies of the U.S. to overcome the trade barriers that impede us from exporting those products. We are optimistic in getting positive results in the coming months. On the multilateral track, in the Sanitary and Phytosanitary Committee of the WTO, Argentina made its energetic complaint over years of delay from the United States in authorizing imports of fresh, refrigerated and frozen beef from the zone free of foot and mouth under vaccination.

–Has the suspension of the generalized system of preferences harmed the country?

–There has not been a relevant negative impact.

[*Translator note on above article: the misspellings by the original article are indicated by (sic) however one use of (sic) that has an asterisk is part of the original text of the article, inferring that the term “Americans” is incorrect.]

For that, Argentina will not capitulate to speculators’ actions either on the legal or the political front.

Ambito Financiero

“One can expect anything from the vulture funds”

Friday, July 20, 2012

By Ignacio Ros

Interview with Jorge Argüello, Argentine ambassador to the U.S.

«One can expect anything» from the hedge funds, warned Argentina’s ambassador to the United States, Jorge Argüello. There are complaints filed before Judge Thomas Griesa in New York against the government for US$3.5 billion around unpaid debt. However, Arguello said that “around 90% of all the cases with final decisions against Argentina in U.S. courts belong to vulture funds, domiciled in tax havens.” “Only approximately US$300 million belong to U.S. citizens,” he said. In an interview with Ambito Financiero, the official referred to the government’s legal strategy, the suspension of tariff preferences from the United States for the country and opened the possibility that American oil companies are coming to the country to participate in YPF projects.

Reporter: What are the next steps in the government’s legal strategy with the hedge funds?

J.A.: Argentina restructured 92% of its debt in default, but is still being harassed by the vulture funds, who refused to enter the swaps offered by Argentine in 2005 and 2010, and that are trying to get profits from one of the many holes in the international financial system and the lack of an internationally-accepted instrument for resolving sovereign debt. Faced with the lawsuits from a few bondholders, Argentina is cooperating judicially, but argues its position in terms of fairness and non-discrimination, supported in international law. The actions of the vulture funds would be roundly frustrated if there existed an internationally accepted legal mechanism to resolve sovereign debt that would obligate these minority speculators to accept restructuring agreements in countries in turmoil. It’s such that after the 2001 crisis in Argentina many countries have opted to include clauses in their debt bonds on class actions and jurisdictions. For that, Argentina will not capitulate to speculators’ actions either on the legal or the political front.

P.: It has always been speculated that some vulture funds were financing politicians and lobbyists. Do they have access to important congressmen?

J.A.: It’s a priority task to counter the political actions of the vulture funds, in particular in the Congress of the United States. They tried to disseminate and make known our country’s position and the true intentions of the vulture funds. Recently, we published and distributed a book about “Myths and realities” of the 2001 default, to which was added a bi-weekly publication (Argentine Embassy Newsletter) that is distributed to the 535 members of Congress and the top authorities of the administration of President Obama. We’ve gotten praise about the usefulness of the information sent out to all the political circles of the country and that has generated special interest from the chairpersons of the more important committees in both the Senate and the House of Representatives, which has generated specific meetings about the true situation of the debt and other issues of interest.

P.: In June, the U.S. Supreme Court blocked the possibility to attach reserves as the hedge funds tries. What would be the next move?

J.A.: You can expect anything, especially now, as the effects of the actions we’ve employed have already been felt and they are seeing all the while more that they are further from the possibility of satisfying their interest. They will continue trying to undermine Argentina’s image, since they believe that is how they improve their chances to succeed.

P.: Robert Shapiro, of American Task Force Argentina, said that the country “took four years to emit a restructuring offer, and when it finally came in 2005, half of the foreign investors rejected it”...

J.A.: In September 2003, the Argentine government initiated the process of restructuring. Even with the complexity and magnitude of the debt, which consisted of 152 different bonds emitted under seven different currencies under different jurisdictions, the 2005 swap achieved 76.15% acceptance. Argentina has always maintained a position in accord with the principal of fairness and non-discrimination, conforming with international law.

P.: You said there still is not a good response in the United States around reversing the trade deficit with that country. Does the suspension of tariff preferences complicate the equation?

J.A.: We are working together with the interested sectors and the competent agencies of the United States to overcome trade barriers that impede us from exporting beef and fresh lemons to the U.S. market. We are optimistic around getting positive results in the coming months. The suspension of the GSP has not had a negative impact, as, for example, in 2001 only 10% of bilateral trade was covered by that system, with an amount of US$477 million. More still, the tariff benefit was only US$18 million. However, the deficit in the bilateral trade balance presents a negative trend for our country, which we plan to reverse by increasing bilateral trade even more, but in an equitable fashion.

P.: Is some kind of alliance with American oil companies being studied to exploit any specific deposits with YPF?

J.A.: Argentina possesses valuable energy resources, with great potential, in particular in the area of non-conventional resources. Naturally, for its exploitation technology and capital are required. For that, we’re open and ready to consider investments from any origin, including U.S. investments, as well as strategic associations for their exploitation.

The provincial economy minister, Silvina Batakis, said last week that Buenos Aires would pay its debts as usual this year despite a finance crunch that has pushed up provincial bond yields to near-record levels

Autor: esteban Datum: Heute, 22:11

BUENOS AIRES, July 19 (Reuters) - Argentina's government said on Thursday that it would send more financial aid to Buenos Aires province, allowing the country's biggest district to pay back wages as demanded by striking state employees. The province was unable to pay a routine salary bonus to public servants in early July and offered to pay it in two installments through Aug. 15. State office workers, hospital employees and teachers rejected the pla n. Provincial finances are suffering due to slowing tax revenue growth as the Argentine economy cools and high spending linked to double-digit inflation. Buenos Aires represents nearly 40 percent of Argentina's gross domestic product. On Thursday, Economy Minister Hernan Lorenzino said the federal government would send another 600 million pesos (US$132 million) in financial aid to Buenos Aires province and allow the province to issue a 900 million peso bond, backed by revenue from a national tax-sharing scheme, to pay debts to providers. This comes on top of the 1 billion pesos transferred to the province earlier in July. Gov. Daniel Scioli said in a statement the new funds would allow his government to complete the bonus payment next week. Scioli had initially asked the federal government for 2.8 billion pesos in aid to cover the salary bonus. The request became mired in politics after Scioli ran afoul of center-left President Cristina Fernandez by confirming that he hopes to run for president in 2015, once her second term is up. A fellow Peronist, Scioli served as vice president under Fernandez's late husband and predecessor, Nestor Kirchner. He is seen as more center-right, and both Fernandez and Kirchner have balked when he showed signs of acting autonomously. "The president has resolved ... to tend to the situation of state workers in the province and the provision of essential services on the part of the provincial government," Lorenzino said. Scioli initially proposed to pay the salary bonus in four installments, but last week his government made the first disbursement and vowed to pay the rest on Aug. 15. To get his hands on the needed cash, Scioli ordered spending cuts and struck a deal with casino operators, who agreed to make an extraordinary payment to state coffers in exchange for a renewal of their licenses ahead of time. The provincial economy minister, Silvina Batakis, said last week that Buenos Aires would pay its debts as usual this year despite a finance crunch that has pushed up provincial bond yields to near-record levels. The province faces debt obligations of about $395 million on dollar- and euro-denominated bonds during the rest of the year, according to data released in December. Fernandez has suggested the shortfall in Buenos Aires was due to Scioli's "mismanagement," although many other provinces are also facing spiraling deficits.

Sovereign Friday Bits: Pari Passu Preview;

postings by Anna Gelpern

Sovereign Friday Bits: Pari Passu Preview; DRC Wins in Jersey

posted by Anna Gelpern

The panel for Monday's Second Circuit hearing in NML v. Argentina is Judges Raggi, Pooler and Parker (follow link, click on name for official bio). Recall it was the eleventh-hour recusal of Judge Leval that pushed the hearing off a month. Judge Pooler is no stranger to Argentina debt litigation -- she was on the panel that decided the case where the same plaintiffs tried to attach Argentina's central bank funds. (Argentina won, cert. denied, 552 U.S. 818.) Then again, by the time we are done, there might not be a judge left in the world that did not hear an Argentina debt case. Note also that the case is being heard by its lonesome on Monday afternoon--it's that special!
Speaking of central bank funds ... The question of what assets may be used to satisfy claims against defaulting sovereigns vexes judges worldwide. Earlier this week, the UK Privy Council barred collection of old Zaire debts against the assets of a state-owned mining company of the Democratic Republic of Congo (DRC), bolstering the presumption that state-owned enterprise assets are unavailable to pay general state debts. (Opinion here shortly.) In the end, it is good to have the case resolved on the merits. Had it been brought in England--or had Jersey legislated earlier-- it would have been blocked by an anti-vulture law without deciding precedential questions of immunity.
It is also interesting to see the extent to which the distressed sovereign claim universe is occupied by repeat players. The fellow who sued Zambia and inspired the UK anti-vulture legislation also appears to have been involved early in the DRC deal, according to The Guardian. ... And just like the debt in Donegal v. Zambia, the debt in the DRC case appears to have started as a government-to-government claim. I continue to have reservations about trading these: they are political apples to commercial debt oranges, often extended with mixed motives, poorly documented, sold by cash-strapped transition economies, and prone to abuse.

http://www.creditslips.org/creditslips/GelpernAuthor.html

Der ABDRECO GmbH ist es gelungen, einen Betrag über ca. Euro 14.000,00 durch einen weiteren PFÜB zu vollstrecken. Grundlage dieser Vollstreckung war der zu unseren Gunsten ergangene Kostenfestsetzungsbeschluss des LG Frankfurt aus dem Hauptverfahren. // aus dem Wiebel-Board rüberkopiert (wird dort sofort gelöscht / muss also brisant sein)

aus dem Wiebel-Board rüberkopiert (wird dort sofort gelöscht / muss also brisant sein)

ABDRECO

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[ Antworten ] [ Ihre Antwort ] [ Forum www.b-wiebel.de ]

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Abgeschickt von ein Stiller der ABDRECO am 20 Juli, 2012 um 09:41:46:

Antwort auf: Diese Meldung ist ein Fake von fake am 20 Juli, 2012 um 09:03:11:

aus Beweissicherungsgründen bitte sofort auf Festplatte sichern oder ausdrucken, da Bernd als Vasaale von RA J.Heichele gerne löscht !!!

Sachstandsbericht

1.

Die ABDRECO GmbH hat Mitte des Jahres 2012 einen Pfändungs-und Überweisungsbeschluss (PFÜB) beim AG Franfkurt/Main, Vollstreckungsgericht, gegen die Rep. Argentinien und die Deutsche Bank AG als Drittschuldnerin beantragt.

Durch diesen PFÜB sollen die laufenden Verzugszinsen seit Rechtskraft des Zahlungsurteils (2009) vor der Verjährung geschützt werden.

Diese Vorgehensweise war im Hinblick auf § 197 Abs. 2 BGB notwendig, da die Republik Argentinien diesen Einwand in Parallelverfahren bereits erhoben hatte.

Im Zuge der Erwirkung dieses PFÜBS könnte es erforderlich werden, dass die Originale der Anleihen beim AG Frankfurt,Vollstreckungsgericht, nochmals vorgelegt werden.

Die steht aber im Ermessen des AG Frankfurt, Vollstreckungsgericht. Sollte das Gericht sich für diese Vorgehensweise entscheiden, werden wir Sie nochmals hierüber informieren und dann einen gemeinsamen Termin zur dortigen Vorlage vereinbaren.

Diese Massnahme war jedoch unumgänglich, da anderenfalls ein volles Zinsjahr von der Verjährung bedroht gewesen wäre.

2.

Der ABDRECO GmbH ist es gelungen, einen Betrag über ca. Euro 14.000,00 durch einen weiteren PFÜB zu vollstrecken. Grundlage dieser Vollstreckung war der zu unseren Gunsten ergangene Kostenfestsetzungsbeschluss des LG Frankfurt aus dem Hauptverfahren.

Die ca. 14.000,00 Euro sind noch nicht geflossen, dies sollte jedoch in den nächsten Wochen erfolgen.

Pari Passu U on July 23 at 3 (unless they change it again)

postings by Anna Gelpern

Pari Passu U on July 23 at 3 (unless they change it again)

posted by Anna Gelpern

The NML [Elliott] v. Argentina pari passu argument was rescheduled yet again, to July 23.
While we wait, FT Alphaville gets my semi-annual pari passu usage prize for slipping "the boy who cried pari passu" in its nice piece on Spanish bank bailout confusion. More on the Euro-bank angle on pari passu when Eupdate comes back. With luck, by then we will know what pari passu means. Or not.

Argentinien verhebt sich an Ölkonzern YPF

17.07.2012

Verstaatlichung

Argentinien verhebt sich an Ölkonzern YPF

Aus Buenos Aires berichtet Stefan Biskamp

DPA

Rücktrittsdrohungen, offener Streit und akuter Geldmangel: Drei Monate nach der Verstaatlichung von YPF weiß Argentiniens Staatsführung um Präsidentin Cristina Kirchner nicht, wie sie ihren riesigen Ölschatz heben soll.

Buenos Aires - Miguel Galuccio (43) macht nicht den Eindruck, demnächst alles hinwerfen zu wollen. In diesen Tagen zieht der neue Chef des Mitte April verstaatlichten argentinischen Ölkonzerns YPF aus dem Hotel Sofitel in eine eigene Wohnung in Buenos Aires und holt seine Familie aus London nach; seine Tochter ist schon in der neuen Schule angemeldet. Der ehemalige Topmanager des Petro-Dienstleisters Schlumberger richtet sich auf längere Zeit in Argentinien ein.

Dabei ist die Position Galuccios ein Schleudersitz - mit der Regierung am Auslöser. Vor gut einem Monat versicherte Staatspräsidentin Cristina Fernandez de Kirchner, Galuccio könne professionell arbeiten, "was nicht bedeutet, dass sich die Interessen von Unternehmen und Staat entkoppeln". Das klingt im Nachhinein fast wie eine Drohung.

Die offiziellen 100 Tage Schonfrist sind für den seit Mai amtierenden Vorstandsvorsitzenden längst nicht vorbei, doch schon jetzt murren Politiker über die schleppende Investorensuche. Galuccio soll schon mit Rücktritt gedroht haben, führende Mitarbeiter aus seinem Stab haben das Weite gesucht.

"Der ganze Prozess der Enteignung ist unvollständig", kritisiert der ehemalige Energiestaatssekretär Jorge Lapeña. "Es gibt keinen strategischen Plan, es ist ein Sprung ins Leere. Und wir müssen abwarten, was mit dem Management von Galuccio passiert, wenn Investitionen ausbleiben: Die Regierung hat kein Kaninchen mehr im Zylinder."

35 Milliarden Dollar Investitionen nötig

Galuccios Aufgabe ist ungefähr so schwer wie Blei in Gold zu verwandeln. Und dass er dabei tatsächlich auch aus Steinen schwarzes Gold - Öl - pressen muss, ist noch der leichte Teil seines Jobs. Denn er steckt in einer schier unauflöslichen Zwickmühle.

Auf der einen Seite braucht er dringend einen Großinvestor, damit YPF einen riesigen Ölschatz heben kann, der in Patagonien lagert, und mit dem Argentinien seine Energieprobleme auf lange Sicht lösen will - 2011 war Argentinien erstmals seit Jahrzehnten wieder Erdöl-Nettoimporteur, und zwar für satte drei Milliarden Dollar. Um den Trend zu drehen, muss YPF in den kommenden fünf Jahren 35 Milliarden Dollar investieren; für dieses Jahr sind 3,5 Milliarden Dollar avisiert. Denn Galuccio hat die Verdopplung der Bohrstellen und 10.000 neue Arbeitsplätze angekündigt.

Vor allem aber geht es um das Schieferölfeld "Vaca Muerta", zu Deutsch "Tote Kuh" im Süden des Landes. Experten des Erdölerkunders Ryder Scott errechneten in tiefen Gesteinsschichten unter einer Fläche von 8071 Quadratkilometern 22,807 Milliarden Barrel - jeweils 159 Liter - Erdöl. Es wäre eines der größten Schieferölfelder weltweit. Um es auszubeuten, muss das Öl aus Rissen im Schiefer gepresst werden, eine Technik, die sich aufgrund langfristig steigender Ölpreise zu lohnen beginnt.

http://www.manager-magazin.de/politik/weltwirtschaft/0,2828,844289,00.html

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• 1. Teil: Argentinien verhebt sich an Ölkonzern YPF
• 2. Teil: Für den Mann an der Spitze wird es eng
• 3. Teil: Angst vor der Tristesse nach dem Fehlschlag