THE PARIS CLUB AND THE ARGENTINE REPUBLIC AGREE TO A RESUMPTION OF PAYMENTS AND TO CLEARANCE OF ALL ARREARS

THE PARIS CLUB AND THE ARGENTINE REPUBLIC AGREE TO A RESUMPTION OF PAYMENTS AND TO CLEARANCE OF ALL ARREARS

THE PARIS CLUB AND THE ARGENTINE REPUBLIC AGREE TO A RESUMPTION OF PAYMENTS AND TO CLEARANCE OF ALL ARREARS 

The representatives of Paris Club creditors and of the Government of the Argentine Republic met on 28 and 29 May 2014 and agreed on an arrangement to clear debt in arrears due to Paris Club creditors over a five year period. 

The scheme offers a framework for a sustainable and definitive solution to the question of arrears due by the Argentine Republic to Paris Club creditors, covering a total stock of arrears of USD 9.7 billion, as of 30 April 2014. It provides a flexible structure for clearance of arrears within five years including a minimum of USD 1150 million to be paid by May 2015, the following payment being due in May 2016.

During the meeting, the delegation of the Argentine Republic provided a description of the economic and financial situation of its country and presented the measures implemented by the Argentine Government aimed at enhancing inclusive growth and strengthening resilience to external shocks. 

Paris Club creditors welcomed progress made by the Argentine Republic towards the normalization of its relations with creditors, the international financial community and institutions, following the 2001 crisis. 

Realization of initial payment under a formal commitment of Argentina to fully clear its arrears is a necessary and important step for the normalization of financial relationships between Paris Club creditors and Argentina. Paris Club members' export credit agencies that wish to do so will resume their export credit activities. 

Background notes

1. The Paris Club was formed in 1956. It is an informal group of creditor governments from major industrialized countries.

2. The members of the Paris Club which participated in the Joint Declaration were representatives of the governments of Austria, Belgium, Canada, Denmark, Finland, France, Germany, Italy, Japan, the Netherlands, Spain, Sweden, Switzerland, the United Kingdom, and the United States of America. Israel also participated in this Joint Declaration. 

Observers at the meeting were representatives of the governments of Australia, Norway, the Russian Federation, as well as the World Bank, the Inter-American Development Bank, the European Commission and UNCTAD, who did not participate in the negotiations. 

3. The delegation of the Republic of Argentina was headed by Dr. Axel Kicillof, Minister of Economy and Public Finance. The meeting was chaired by Mr. Ramon Fernandez, Chairman of the Paris Club. 

While the borrower is yet to make an official announcement, BNP Paribas and Citigroup are thought to have been mandated on the deal after arranging meetings with investors in Europe and the US over the past month.

While the borrower is yet to make an official announcement, BNP Paribas and Citigroup are thought to have been mandated on the deal after arranging meetings with investors in Europe and the US over the past month.

Province of Buenos Aires readies US$500m bond issue

27 May 2014 | By Davide Scigliuzzo 

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The Province of Buenos Aires appears to be moving closer to tapping the international bond markets after Moody’s and S&P assigned ratings for an up to US$500m senior unsecured bond from the Argentine issuer.

The new notes, which will be subject to New York law, will have a maturity of up to 10 years and amortise in three annual instalment before maturity, according to Moody’s.

The province plans to use proceeds from the issue to finance infrastructure and social projects as well as to plug fiscal imbalances, said Moody’s.

While the borrower is yet to make an official announcement, BNP Paribas and Citigroup are thought to have been mandated on the deal after arranging meetings with investors in Europe and the US over the past month.

The Province has US$1bn plus in debt maturities falling due next year. Moody’s and S&P have respectively assigned a Caa2 and CCC+ ratings to the upcoming issue.

http://www.ifre.com/province-of-buenos-aires-readies-us$500m-bond-issue/21147913.article

würdest du einem Richter sagen das du das Gesetz brechen würdest....

Holdouts add ‘amicus’ against Argentina in the U.S. Courts

Holdouts add ‘amicus’ against Argentina in the U.S. Courts
El Cronista
May 8, 2014
The holdouts yesterday asked the U.S. Supreme Court to reject the main proceedings against Argentina and uphold the ruling that orders the country to pay 100% of the debt in default in cash, in a brief filed with the Court. The investment fund NML Capital, of Paul Singer, accompanied its brief with a weighty amicus curiae, like the former Attorney General under the presidency of George W. Bush.
It is the main case that pits the country against the holdouts, known as pari passu. NML Capital is calling  for "equal treatment" from the country and demands collection on bonds in default for US$ 1.5 billion, between principal and punitive interests. It has a ruling in its favor from New York Judge Thomas Griesa, upheld by the Appeals Court of the Second District of that State. The rulings require the country to pay and that obligation extends to agents for the normalized debt, such as Bank of America: if Argentina does not pay, the court demands that the bonds in default be settled from the payments sent for the swap bonds, which would leave the country in technical default.
Argentina appealed to the Supreme Court on the grounds that such rulings violate federal laws such as the law of sovereign immunity. The Argentine position was supported by firm amicus curiae, like from the French government.  Also supporting the country were Brazil and Mexico. The United States anticipated that, in this case, it will support the arguments of the Argentine government.
Yesterday it was the turn of the holdouts to present their arguments. NML Capital insisted that the case should be settled in the New York courts, since that is the law which Argentina submitted to in its bonds, and that the judgments in their favor do not violate federal law. This was backed by the former Attorney General of United States from the Bush era, Michael Mukasey, and five former Federal judges.
The Supreme Court, which heard from both sides in a related case known as Discovery in late April, has not decided whether it will accept the case yet. The chances for Argentina, according to experts, are minimal. If the Court takes the case, the country will gain months in time and can reach next year with a decision in abeyance. That is the best of all possible worlds for the moment.
With that perspective on the horizon, the government began a series of reserved negotiations with the vulture funds, through third parties. The most notorious was the one led by the “friendly” investment funds Gramercy and Fintech, which proposed to Singer that they would hand over part of their debt as a plus to the reopening of the swap, still suspended.  For the moment, no negotiations succeeded.
Consulted in this regard, Cabinet Chief Jorge Capitanich didn’t deny negotiations with the holdouts. "It is not timely or convenient or prudent to issue value judgments or opinions with respect to a matter that is being tried in court,” he said. "Any communication by the Republic of Argentina is done through the lawyers who are handling the case or through official communications of the Economy Ministry," he continued.
Holdouts suman ‘amicus’ contra Argentina en la Corte de Estados Unidos

new details of a high-profile "friend-of-the-court" brief, expected to be filed Wednesday by former Attorney General Michael B. Mukasey and five other former federal judges.

ATFA's Robert Raben and Washington Legal Foundation's Richard Samp Discuss Briefs in Opposition to Argentina in famed Republic of Argentina v. NML Capital (Pari Passu) Case  High profile, "friend-of-the-court" brief by former U.S. Attorney General Michael B. Mukasey and former federal judges argues against Supreme Court review Please join a media teleconference on Thursday, May 8, 10:30 a.m. EDT, where ATFA Executive Director Robert Raben and Washington Legal Foundation Chief Counsel, Richard A. Samp will discuss the latest developments in the famed Republic of Argentina v. NML Capital (pari passu)case and new details of a high-profile "friend-of-the-court" brief, expected to be filed Wednesday by former Attorney General Michael B. Mukasey and five other former federal judges.  Samp will share insights and analysis on arguments put forward in both NML opposition briefs and in the Mukaseyamicus brief, and address implications for the process going forward. The Republic of Argentina v. NML Capital (pari passu) case is being watched carefully as a test of enforceability of contracts and rule of law with respect to a sovereign. What: Discussion of reply briefs in Republic of Argentina v. NML Capital When: Thursday, May 8 10:30 a.m. EDT Participants: Robert Raben Executive Director, American Task Force Argentina Richard Samp Chief Counsel, Washington Legal Foundation Toll-free call-in numbers: United States/ Canada: 800-862-9098; Argentina: 0-800-666-0250 Conference ID: Argentina **Please note, if an international site is unable to access the call using the international toll free number for their country, they may dial in using the toll (785) number. NOTE:  RSVP required to media@atfa.org Robert Raben is ATFA's Executive Director. He served as Assistant Attorney General, Office of Legislative Affairs under President Clinton and, prior to that, as an associate with Arnold & Porter, specializing in international trade, federal lobbying and white-collar criminal defense. He serves on the Boards of the Hispanic Bar Foundation and the Joint Center for Political and Economic Studies. Richard Samp is Chief Counsel of the Washington Legal Foundation, a nonprofit public interest law firm that litigates in support of individual rights and the free-enterprise system and against excessive government regulation. He practices regularly before the U.S. Supreme Court and other federal courts. ### About the American Task Force Argentina: The American Task Force Argentina (ATFA) is an alliance of organizations united for a just and fair reconciliation of the Argentine government's 2001 debt default and subsequent restructuring. Our members work with lawmakers, the media, and other interested parties to encourage the United States government to vigorously pursue a negotiated settlement with the Argentine government in the interests of American stakeholders. American Task Force Argentina PO Box 3197 Arlington VA 22203-0197 Unsubscribe

Ambito Financiero said Argentina is taking proposals from UBS AG, Goldman Sachs Group Inc. and HSBC Holdings Plc to settle with creditors, which may include swapping the bonds for new notes and buying the untendered debt from the holdouts.

Elliott Bemoans ‘Radio Silence’ as Bonds Soar: Argentina Credit

By Camila Russo and Katia Porzecanski  May 6, 2014 5:54 PM GMT+0200  

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Photographer: Jacques Demarthon/AFP via Getty Images

The securities in the restructuring include bonds due in 2017 and 2033 and warrants... Read More

At a time when billionaire Paul Singer’s Elliott Management Corp. is bemoaning the unwillingness of Argentina to negotiate a debt settlement, the nation’s defaulted bonds are soaring.

The securities have jumped as much as 20 percent to 53 cents on the dollar since the end of February, part of a surge in Argentine assets as the nation takes steps to shore up foreign reserves and repair ties with the International Monetary Fund, Exotix Partners LLP said. Argentine bonds issued in two exchanges since its $95 billion default in 2001 jumped 11.8 percent in that span, five times the emerging-market average.

The gains in the restructured notes are boosting optimism among holders of defaulted debt that they will receive a bigger payout in the event of an accord with Argentina, said Exotix and Caracas Capital Markets. While Elliott said last month that Argentina has responded to efforts to negotiate a resolution to their decade-long legal battle over defaulted debt with “radio silence,” newspaper Ambito Financiero reported Feb. 20 the government is weighing options to solve the dispute.

“The rally after the policy shift helped the untendereds and they should continue to catch up,” Stuart Culverhouse, an economist at Exotix, said by telephone from London. “People are seeing it as offering upside if Argentina reopens.”

Bonds Surge

Under the same terms offered by Argentina in its 2005 and 2010 swaps, current holders of the defaulted debt would receive 65 cents on the dollar, according to Exotix. In the prior restructurings, about 93 percent of the bonds were swapped at about 30 cents on the dollar at the time.

The securities in the restructuring include bonds due in 2017 and 2033 and warrants linked to economic growth. On average, prices for those securities have rallied 4.2 cents on the dollar since the end of February, buoyed by President Cristina Fernandez de Kirchner’s decision to devalue the peso, revamp economic data at the request of the IMF and compensate Repsol SA for Argentina’s seizure of its stake in oil producer YPF SA.

The extra yield investors demand to own Argentine bonds over U.S. Treasuries narrowed one basis point to 779 basis points at 11:30 a.m. New York time.

Ambito Financiero said Argentina is taking proposals from UBS AG, Goldman Sachs Group Inc. and HSBC Holdings Plc to settle with creditors, which may include swapping the bonds for new notes and buying the untendered debt from the holdouts.

Argentina’s Economy Ministry press official Jesica Rey didn’t respond to a telephone message fromBloomberg News seeking comment.

Legal Case

While Argentina hasn’t reopened the swap, Congress approved a bill in September that lets the government give investors who haven’t tendered a chance to do so. Two months later, Argentina’s Economy Ministry created a restructuring unit to assist and advise on public debt policies and participate in negotiations with creditors.

The moves came after holdout creditors led by Elliott won a case in the U.S. Court of Appeals in August that requires the country to pay owners of the defaulted bonds in full when it makes payments on $24 billion of restructured debt. Argentina is asking the Supreme Court to review the ruling, which roiled its markets on concern the nation would renege again.

The legal dispute has also kept the country from selling bonds overseas since its 2001 default. Elliott says it has $1.7 billion in unpaid judgments.

“‘Radio silence’ is the best description for the current regime’s response to our frequent requests to negotiate a resolution,” New York-based Elliott said in a letter to investors obtained by Bloomberg News. “We have no choice but to pursuing legal actions to enforce our claims.”

Bond Exile

If the lower-court order stands and Argentina obeys it, the defaulted bonds would be worth as much as 150 cents on the dollar, including accrued interest, said Russ Dallen, the head trader at CaracasCapital Markets. If the ruling is overturned, Argentina would still have an incentive to reach an agreement with holdout creditors to regain access to bond markets.

“Argentina needs to re-access international capital markets and the government knows that,” he said in an e-mail.

Hernan Yellati, the head of research at BancTrust & Co., said Argentina probably won’t reopen the swap until a new president takes office after elections next year. He favors Argentina’s restructured dollar bonds due in 2028.

“A payment to the holdouts will take some time,” he said by e-mail. “It’s something that won’t be dealt with until the next government.”

The run-up in the defaulted bond prices indicates investors are becoming optimistic Argentina will reach a settlement, said Caracas Capital’s Dallen.

“Remember that these are worthless at the moment. I mean, they pay no interest and are essentially defaulted, orphaned debt,” he said. “For them to have a bid means that someone thinks that they are going to get at least 50 cents.”

To contact the reporters on this story: Camila Russo in Buenos Aires atcrusso15@bloomberg.net; Katia Porzecanski in New York at kporzecansk1@bloomberg.net

To contact the editors responsible for this story: Brendan Walsh at bwalsh8@bloomberg.net;Michael Tsang at mtsang1@bloomberg.net Lester Pimentel, Bradley Keoun

http://www.bloomberg.com/news/2014-05-06/elliott-bemoans-radio-silence-as-bonds-soar-argentina-credit.html

Judge Griesa