Asked if the government is planning what to do and how to pay these particular litigating bondholders that refused to accept the debt-swaps offered in 2005 and 2010, Lorenzino was clear but left a door open.

Tuesday, November 20, 2012

‘Vulture funds seek to mount a default stage,’ Lorenzino

Economy Minister Hernán Lorenzino said today that claims set by international "vulture" funds against Argentina have the only intention of mounting fear and raise doubts about the country’s ability to repay debt."

Lorenzino also explained that “these vulture funds are only trying to cash out their bond-insurance policies through some third third-party associates they have.”

Asked if the government is planning what to do and how to pay these particular litigating bondholders that refused to accept the debt-swaps offered in 2005 and 2010, Lorenzino was clear but left a door open.

“So far our entire responsibility is with the 93 percent of our creditors who did agree to accept a debt reestructure under a payments system that spans until 2033 and 2038 in some cases.

On the other hand, vulture funds want us to pay all their bonds now. But Argentina’s policy is to offer solutions that are sustainable in time.”

The litigating bondholders, or holdouts, are investors that did not participate in Argentina’s 2005 or 2010 debt swaps. The holdout creditors own an estimated US$1.3 billion of defaulted claims.

To end, the minister explained that Argentina has to meet two debt payments before the end of the year for a total of 3.9 billion dollars

http://www.buenosairesherald.com/article/117225/lorenzino-argentina-not-going-into-default