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Dienstag, 5. März 2013

Argentina May Offer Holdouts 2038 Par Bond, Cronista Reports


CCTV
 
Thursday, February 28, 2013
 
VIDEO
 
Arturo Porzecanski, Economist and professor at American University joins Phillip Yin onset in Washington, D.C., to discuss the Argentina debt lawsuit. The case is said to be of historic proportions.
 
 
Financial Times
 
Monday, March 4, 2013
 
By Joseph Cotterill
 
Continuing our take on the arguments at last week’s big hearing in NML v Argentina…
 
Last time we looked at what Argentina said; this part will cover its restructured bondholders; Bank of New York, their trustee; and the holdouts.
 
Though Argentina’s still hogging the limelight. That’s after the Second Circuit’s follow-up order for the government to put “precise terms” of an equitable offer to pay holdouts in writing…
 
 
Reuters
 
Monday, March 04, 2013
 
By Felix Salmon
 
On Friday, the Second Circuit court of appeals issued an order, aimed at Argentina. The order is worth quoting in full, because it helps to explain the reasoning by which the Second Circuit is going to end up pushing Argentina into default:
 
At oral argument on Wednesday, February 27, 2013, counsel for the Republic of Argentina appeared to propose that, in lieu of the ratable payment formula ordered by the district court in its injunction and accompanying opinion of November 21, 2012, Argentina was prepared to abide by a different formula for repaying debt owed on both the original and exchange bonds at issue in this litigation. Because neither the parameters of Argentina’s proposal nor its commitment to abide by it is clear from the record, it is hereby ordered that, on or before March 29, 2013, Argentina submit in writing to the court the precise terms of any alternative payment formula and schedule to which it is prepared to commit.
 
 
The Wall Street Journal
 
Monday, March 04, 2013
 
By Shane Romig
 
BUENOS AIRES--Argentine bonds and stocks rose again Monday on a continued tailwind from signs that the country may be open to a deal with holdout creditors.
 
Markets rallied Friday after President Cristina Kirchner said she would re-open a discounted bond swap offer to try and lure in the remaining holdout creditors.
 
In addition, a U.S. court asked Argentina to present a plan to pay the holdouts, offering hope that the court may issue a ruling that doesn't push Argentina into default on its performing bonds.
 
"Before there were no negotiations, now there are negotiations . . . which could have a good result," said Guido Macchi, trader at the brokerage bearing his name.
 
 
Bloomberg
 
Monday, March 04, 2013
 
By Camila Russo
 
Argentina may offer bonds due 2038 at par value to creditors who are claiming payment on their defaulted debt in U.S. courts, Cronista reported today without saying how it obtained the information.
 
The offer would be in response to a U.S. appeals court request that Argentina propose a payment alternative to U.S. District Court Judge Thomas Griesa’s order that the government pay the full $1.3 billion the creditors are seeking when it pays performing debt, the Buenos Aires-based newspaper reported.
 
 
Buenos Aires Herald
 
Monday, March 04, 2013
 
Gov’t could present debt restructuring proposal to New York court this week
 
Amid fears of a unfavourable ruling that could send the country into its second massive debt default in 11 years, Vice-President Amado Boudou and Economy Minister Hernán Lorenzino reaffirmed yesterday that Argentina will stick with the 2010 restructuring offer for the so labelled “vulture” holdouts, which are still seeking the full-repayment of the debt created during the 2001’s default.
 
Both were out to clarify they are seeking to convince the judges and not the holdouts of the ability to pay the latter group, in what would end a decade-long conflict with the speculative financial firms.
 
 
Council on Hemispheric Affairs
 
Monday, March 04, 2013
 
By Gene Bolton
 
In 2001, Argentina defaulted on $80 billion USD worth of bonds, a move that received widespread international condemnation.  In 2005, the country was able to renegotiate the terms of its debt, a process in which a great percentage of its creditors took a large haircut and accepted GDP linked exchange bonds at 25 to 29 cents on the dollar.  Five years later, the remaining creditors were offered a similar deal. A majority accepted, bringing Argentina’s total restructured debt to 93 percent of the amount on which it had defaulted.
 
Argentina’s debt restructuring process can be categorized as a giant diplomatic headache.  Although 93 percent of the country’s debt was settled or restructured by 2010, the creditors holding the remaining 7 percent have continued to attack the Argentine government. The holdout creditors, otherwise known as “vulture funds,” have attempted to seize precious Argentine artwork, the country’s presidential plane, and personal holdings of prominent politicians.  One of the funds spearheading the seizure attempts, NML Capital, actually seized an Argentine naval vessel in Ghana as it concluded a tour to several countries in Latin America, Europe and Africa. The various attempts to seize Argentine property abroad represent an attempt to enforce the judgment of the federal judge for the United States Southern District of New York, Thomas P. Griesa, which totaled $1.33 billion USD.
 
 
Ekklesia
 
Sunday, March 3, 2013
 
British and Argentine campaigners have staged a noisy pots and pans protest outside the offices of Elliot Associates in London, in support of Argentina’s right not to pay the ‘vulture funds’ still chasing huge profits from its late-2001 debt default.
 
The demonstraation late last week came on the eve of an appeal brought by Argentina against a verdict in October 2012 which could force the South American country to default on its debts once more, and could make sovereign debt crises, including in Europe, much harder to resolve in future.
 
The protest is part of a campaign organised by the British NGO, Jubilee Debt Campaign in collaboration with the Argentinian organisation Dialogue 2000 - Jubilee South Argentina.
 
 
Reuters
 
Monday, March 4, 2013
 
* Revenue growth tops private inflation estimates of 25 pct
 
* Income tax receipts surge 44.2 pct in February
 
(Reuters) - Argentina's February tax revenue was 60.89 billion pesos (US$12.05 billion), up 28.8 percent from the same month last year and beating expectations, the government said on Monday.
 
Analysts had forecast the government's tax take at 59.29 billion pesos, according to the median in a Reuters poll in which estimates ranged from 58.60 billion to 60.30 billion pesos.
 
 

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