La Nacion: “Government turns: proposes reopening the debt swap” by Martín Kanenguiser

LEAD ARTICLES: (translations coming)

 

La Nacion: “Government turns: proposes reopening the debt swap” by Martín Kanenguiser

 

Clarin: “Change of strategy: now they bet on reopening the swap” by Tomás Canosa

 

El Cronista: “Argentina confirms offer to vulture funds to avoid technical default”

By Esteban Rafele

 

Ambito Financiero: “Congreso already negotiating fast vote on law for new swap”

(no byline)

 

La Nacion: “The decision is in the hands of a court with strong precedents” by Silvia Pisani 

 

Ambito Financiero: “Appeal founded on a context of legal weakness” by Eugenio A. Bruno, Attorney

 

La Nacion: “Cristina asks UNASUR to take up ‘judicial colonialism’” (no byline)

 

El Cronista: “To the shadow of default and of another political defeat” by Fernando Gonzalez, News Director

 

El Cronista: “I don’t know if the funds would accept a restructuring now” (Interview with Orlando Ferreres)

 

 

DEBT DIGEST:

 

LA NACION:

·         “A default would put one third of currency that comes in at risk”, by Javier Blanco.

Several Argentine consultants explain that about 1/3 of all hard currency that has flowed into Argentina this year is from external credits of a variety of types, supporting Argentine companies, provinces and other key elements of the economy.  If a default occurs, those funds could immediately dry up and have a much larger impact on the local economy that the hardliners in government are admitting with their “strong discourse over the debt dispute.”

·         “Bonds are now treated as ‘junk’”, by Javier Blanco.

Report on Fitch’s decision to lower Argentina’s sovereign rating to C, or junk status.

 

CLARIN:

·         “Cristina will ask for UNASUR support for the conflict with the vulture funds,” by Guido Braslavsky

About her meeting with Peruvian President Ollanta Humala in Buenos Aires, and that she will ask the southern block to take up the issue of vulture funds, foreign direct investment, and other items at the next summit.  She also thanked him for his support on the Falklands dispute.

 

EL CRONISTA:

·         “If the exchange re-opens, the government would have the green light in Congress,” by Noelia Barral Grigera

The UCR and FAP leadership in Congress goes public with support in a fast approval of suspension of the Lock Law, with UCR leader Ernesto Sanza saying that “if the Economy Ministry called us at 8:30 in the morning, at 9:30 it would be law.”  Immediate action, should the government ask for it, appears absolutely assured in both chambers.  

·         “Fitch lowers local rating to junk level and says that default is likely,” by Leandro Gabin.

Report on Fitch lowering Argentina’s debt rating to C, or junk status. 

·         “Cristina asks that UNASUR back Argentina’s position on debt,” (no byline)

Report on Cristina’s public comment that she believes UNASUR is an appropriate arena to “talk about it and for us to take it, and give it more density.”

·         “Insurance against default won’t be set off by a non-payment of the GDP coupon,” by Matias Barberia.

Wall Street firms are debating if the CDS against Argentine default would pay out immediately or as late as March 2013 should Argentina not pay the GDP coupon on December 15.

·         “Businessmen support the reopening of the swap and criticize Griesa ruling,” by Dolores Ayerra and Natalia Donato.

A report from the annual UIA conference, where a wide range of business leaders told the newspaper they would throw their support behind the government if it made a move to reopen the debt swap as a solution to the standoff in New York.  Some businessmen criticized in whispers the country’s posture and criticize the lack of management, making reference to the many statements by officials about the refusal to pay one dollar to the bondholders.  “If you don’t ever pay what you owe, which is a duty, the consequences are in view.  Clearly it has an effect on the cost of financing of various economic actors,” one unnamed auto sector leader told the paper.

·         “Bankers defend Cristina in the fight against the holdouts” (no byline)

A blurb that notes that public support for the government’s stand came from a number of bank sector leaders during an event held by Aerolineas Argentinas.

·         “Lorenzino, against CDS payments” (no byline)

A blurb that Lorenzino tweeted yesterday the following: “We said it: vultures + raters (Fitch) prepare the scene to collect insurance.”

 

AMBITO FINANCIERO:

·         “Cristina against judicial colonialism,” (no byline)

Report on Cristina’s comments that she views the New York ruling as “clear judicial colonialism” and wants to take the issue of sovereign debt to UNASUR for discussion.

·         “Fear of more payments in NY”, by Pablo Wende

About the wild ride of Argentine bonds on the New York markets this week after the Thanksgiving break, and how they’ve fallen hard to a place where they are worth less than bonds issued in Argentina.  Also a note that GDP coupons on the London market fell 9% yesterday with a huge volume.  “There were no clear explanations for such a sharp drop.”

·         “Businessmen support reopening of the exchange and criticize vultures,” by Sergio Dattilo

Report from the UIA annual conference where a number of top business figures give strong support to Lorenzino and the government, with Luis Betnaza of Techint (no friend of the Casa Rosada) saying “I believe that Lorenzino’s statements are a very good signal of pragmatism and responsibility.”  UIA head Jose Ignacio de Mendiguren says that “the vulture funds are waiting for Argentina to declare default to turn around and demand payment from insurers on their defaulted bonds.”

·         “Efforts start today on the release of the Frigate”, by Carlos Burgueno

Argentina begins its work today in Hamburg when it takes direct contacts with Ghana’s representatives before the hearings tomorrow at the ITLOS.  They are “confident of a rapid negotiated solution this week and that Ghana accepts release of the ship, without paying the US$20 million that the Ghanaian judicial system demands as bail.”

 

JORGE ARGUELLO on Twitter and Blog:

·         He tweeted a link to a Washington Times piece on the debt dispute: (http://www.washingtontimes.com/news/2012/nov/27/embassy-row-ambassasdor-and-vultures/#.ULV1eEswQDw.twitter )

·         He tweeted a link to a BA Herald piece from two days ago: http://www.buenosairesherald.com/article/117865/we-wont-tolerate-nmls-blackmailing-argentinas-ambassador-to-us#.ULV4GN7qUfA.twitter

·         He tweeted that the Argentine Chair program at Georgetown is beginning its work with an event yesterday, entitled “Federalism present and future: comparative perspectives” that featured Chaco Governor Jorge Capitanich and “invited experts”