Sunday, November 18, 2012

Lorenzino: 'Argentina not going into default'

Economy Minister Hernán Lorenzino said that "the only possibility" contemplated on regards Argentina's debt is "to meet all payments” of creditors that entered debt swaps after the 2001 default and said the country "cannot and will not enter in default."

"We have an obligation and a commitment to our creditors, who are those who accepted the debt-swaps offered in 2005 and 2010", Lorenzino said in an interview published by newspaper Página/12.

The statements came after the presentation by Argentina to New York Judge Thomas Griesa to maintain his order blocking payment on defaulted sovereign bonds to holdout investors until lingering questions are settled in a higher court's appeals process.

Lorenzino also warned that "some are betting a lot of money to get rating agencies to say that Argentina defaulted on its obligations since whether that happens or not, then they’ll be able to cash some insurances they bought in the market."

Anyway, the minister said that "Argentina will fulfill all obligations to its creditors", and stressed that "the country not only wants to meet all payments, but also has the means to do it."