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Freitag, 11. Juli 2014

Argentine economic team meets court-appointed mediator in New York

Friday, July 11, 2014

Argentine economic team meets court-appointed mediator in New York

An Argentine delegation without Economy Minister Axel Kicillof will attend a meeting in New York with a court-appointed mediator today, as the government seeks to resolve a dispute with holdout investors over its sovereign debt.

Argentina needs to seal a deal before a July 30 deadline with investors who rejected its debt restructurings after its catastrophic 2002 default on $100 billion. 

"The mission that will meet with the special master Daniel Pollack in New York will be carried out by the juridical and financial team of the economy ministry and other areas of the government," Argentine Cabinet Chief Jorge Capitanich told reporters at his daily briefing yesterday.

He said Economy Minister Axel Kicillof will not participate.

US District Judge Thomas Griesa has ruled Argentina must immediately pay the group of holdouts, led by hedge funds Elliott Management Corp and Aurelius Capital Management, the bonds' full value worth $1.33 billion plus accrued interest.

Griesa's ruling also ordered Argentina not to pay out to other investors who accepted large writedowns on their debt holdings until it had settled with the holdouts. More than 92 percent of investors agreed to receive less than 30 cents on the dollar in restructurings carried out in 2005 and 2010.

When Argentina in late June deposited a coupon payment worth about $539 million with the government's transfer agent, Bank of New York Mellon (BONY), Griesa blocked any onward transfer.

Since then the bank has faced competing demands: from Griesa's court order, from investors who want their interest payment and from Argentina, which says the money no longer belongs to it.

Yesterday, BONY said Euro bondholders had threatened to sue the bank if it returned the funds to Argentina.

"(The bank) seeks clarification that it may comply with this Court's Injunctions by retaining the funds received from Argentina in the Banco Central Accounts where they are presently held," BONY wrote in the opening statement of the motion.
Tags:  Argentina  economy  Kicillof  debt  Grie

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