Bond Coverage:
The Economist: “Hold-outs upheld”
FIN Alternatives: “Hedge Funds Poke Argentine in Court, Falklands”
Buenos Aires Herald: “CFK assures Argentina will make bond payments ‘in dollars’”
MercoPress: “Cristina Fernandez criticizes US court and promises all debt bonds will be paid in dollars”
Reuters: “FINEWS-Argentine president slams ‘vulture funds,’ vows to pay debts”
Financial Times: “Argentina, padlocks and vultures”
The Wall Street Journal: “Argentina’s Bonds Extend Losses; Stocks Track US Markets Higher”
Frigate Libertad:
Ghana Web: “Argentina ship case bounces back”
Argentine Economy:
Reuters: “TEXT-S7P: Four Argentine Banks Downgraded to ‘B-‘ From ‘B’”
MercoPress: “Argentina tightens ‘dollar-clamp:’ end to mortgage loans in US currency”
Global Relations:
Buenos Aires Herald: “Peru angered by party’s meetings in Argentina”
Press Freedom:
Buenos Aires Herald: “Debate rages as December 7 ‘D-Day’ approaches”
YPF:
The Wall Street Journal: “Argentina’s YPF will not export fuel oil for the rest of 2012: source”
The Economist
Friday, November 2, 2012
UNLIKE the obligations of firms or individuals, government bonds are backed merely by the issuer’s word. In theory, when states act commercially in foreign jurisdictions, they have no more rights than any other borrower. In practice, the assets they hold abroad—embassies, military equipment, central-bank reserves and the like—are protected by treaties. Ever since wars to collect unpaid debts went out of fashion, governments have been kept in check only by their need to borrow again in future.
FIN Alternatives
Friday, November 2, 2012
It's open season on Argentina among hedge funds.
The country suffered a huge court defeat in its ongoing battle with Elliott Associates over its 2001 default. Meanwhile, Elliott's hedge fund peers are, in effect, quietly calling Argentina's bluff on the Falkland Islands, which the country claims but which have been in British hands for almost 180 years.
Last week, in a ruling that could cost Argentina more than $1 billion, the federal appeals court in New York upheld a lower-court ruling that bars Argentina from paying bondholders who accepted its exchanges for the defaulted debt before those who, like Elliott affiliate NML Capital and Aurelius Capital Management, refused to take the haircut.
Buenos Aires Herald
Thursday, November 1, 2012
President Cristina Fernández de Kirchner assured today that Argentina's dollar-denominated debt bonds are to be “paid in dollars” whilst criticizing the New York judiciary for its latest ruling against Argentina, in a speech at the Government House today.
“It’s a court that evidently does not know enough about its own legislation”, the Head of State said, who considers that a recent ruling made on Friday against Argentina by a New York appeals court “puts 93 percent of holdout creditors at risk.”
MercoPress
Thursday, November 1, 2012
“It’s a court that evidently does not know enough about its own legislation”, the Head of State said, who considers that a recent ruling made on Friday against Argentina by a New York appeals court “puts 93% of creditors at risk because of the holdouts.”
On Friday, a federal appeals court in New York ruled that Argentina violated bond provisions to treat all creditors equally when it made payments to creditors who accepted the swaps while refusing to pay the holdouts. It said Argentina must pay the holdouts every time it services the restructured bonds.
Reuters
Thursday, November 1, 2012
Argentine President Cristina Fernandez said "vulture funds" that have sued to collect on Argentine bonds in default since 2002 are leading a campaign against her country to try to trigger a new debt crisis. Fernandez's remarks came on the heels of a U.S. appeals court ruling that could force Argentina to repay holdout creditors who rejected 2005 and 2010 debt swaps, through which the country restructured about 93 percent of its defaulted debt.
Financial Times
Thursday, November 1, 2012
By Joseph Cotterill
Complicated, ambiguous, a Heath Robinson machine of sovereign debt payment.
Those are all good ways to describe the likely legal strategies that are now open to Argentina, if it proposes to go on freezing out holdouts but continue paying out on restructured foreign-law debt. That’s after last Friday’s landmark US Court of Appeals decision.
But in a sense, one simple strategy has always been open to the Argentine government: reaching a settlement with the holdouts. (OK, two, counting a hard default on everyone, but let’s not dwell on that.)
The Wall Street Journal
Thursday, November 1, 2012
By Ken Parks
BUENOS AIRES--Argentine sovereign bonds closed broadly lower Wednesday as a recent U.S. court ruling and ratings downgrade continued to punish the local fixed-income market. Stocks closed higher following a batch of upbeat U.S. economic data.
Turnover on the local fixed-income market was 684.3 million pesos ($143.4 million), accounting for about 60% of the total volume of securities traded on the exchange during the session.
Ghana Web
Thursday, November 1, 2012
Two applications have been filed in the case in which an Argentine Naval Ship had been restrained by a court from bunkering.
The first application, which was filed by the Ghana Ports and Harbours Authority, is seeking for a variation on the ship’s anchorage and the state of affairs of the ship.
Reuters
Friday, November 2, 2012
On Nov. 1, 2012, Standard & Poor's Ratings Services lowered to 'B-' from 'B' its global scale issuer credit ratings on Banco Hipotecario S.A., Banco Patagonia S.A., Banco de Galicia y Buenos Aires S.A., and Banco de la Provincia de Buenos Aires. The outlook on the ratings remains negative.
Rationale
The downgrade on the Republic of Argentina is based on the increasing risks the government will face on its debt management following the Second Circuit Court of Appeals of the United States' ruling ratifying the judgment of the New York district court granting summary judgment to plaintiffs on their claims for breach of the Equal Treatment Provision. This rule could potentially increase the liabilities of Argentina and the debt service of the government over the near term. In addition, recent negative events, such as the payment in local currency of a province liability denominated in U.S. dollars issued under Argentinean Law and the blocking of a Navy ship in Ghana by litigants from the 2001 sovereign default, highlight the increasing risks the government of Argentina will continue to face to define its economic policy management and financial program over the near term.
MercoPress
Thursday, November 1, 2012
The measure had been anticipated last July but was only made public and effective Thursday with communication 5318 from the Central bank.
The purpose of the measure “is to have everybody in equal conditions: those who wanting to buy a home without a loan and who would have to buy the dollars in the parallel market, with those who qualify for a loan and thus could have access to the US currency at the official exchange rate”, said the Central bank.
Buenos Aires Herald
Friday, November 2, 2012
Peru slammed reports that Movadef, the nascent political wing of the Shining Path armed group, had met with representatives of human rights groups in Argentina, including the Mothers of Plaza de Mayo Association, with the aim of gaining political credibility. Peru’s Foreign Minister, Rafael Roncagliolo, yesterday “firmly deplored that members of (Movadef) had been received by representatives of non-governmental social organizations” in an official statement.
According to the statement, Peru’s ambassador to Argentina, Nicolás Lynch, “held direct conversations with the Argentine Security Minister, Nilda Garré, with the aim of transmitting the Peruvian government’s rejection of the activities of said group in Argentina. At that time, the Peruvian Ambassador gave the Argentine authorities police information about Movadef’s prior acts and current activities.”
Buenos Aires Herald
Thursday, November 1, 2012
The rapidly approaching implementation of the Media Law, set to be launched when an injunction on Article 161 expires on December 7, continued to be a source of debate yesterday.
Senator María Eugenia Estenssoro (Civic Coalition - Broad Progressive Front) yesterday described the Media Law as “a ferocious assault on the few independent media groups that exist in Argentina” by the national government.
According to the senator, “in all these years there has not been an assault as ferocious and as unlimited against national judges, judges in the Magistrates Council and against the Supreme Court.”
The Wall Street Journal
Thursday, November 1, 2012
Argentinian state-run oil company YPF will not be exporting fuel oil for the rest of 2012, a source said Thursday.
Argentinian oil production has plunged 35% from a record 847,000 b/d in 1998 due to lack of new finds and exploration. Because of this there has been a reduction in exports and a need to import more supplies.
Also in recent years, Argentina has been relying on gas for 50% of its energy needs, importing gas mostly from Bolivia and LNG suppliers.
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