DEBT CRISIS: DAY 23TUESDAY JULY 8, 2014
Kicillof offered to pay holdouts in 2015 with two types of bonds if the injunction is lifted
At the meeting with the judicial mediator, Daniel Pollack, Economy Minister presented an initial proposal to pay about 1,650 million for the final judgment of Judge Thomas Griesa in February 2012.'s Original figure of $ s1.330 million was adjusted for penalty and interest
According to what was learned Infobae, the government would offer as payment two types of bonds:BONAR 24, with a rate of return of 10% per year which was used to pay the debt with the oil company Repsol and the new BONAR 28 without cash using Central Bank reserves of Argentinawithout removing on total debt.
A lawyer close to the negotiations said that "you can not do because it would take a haircut as a voluntary proposal that would trigger the application of RUFO (Right Upon Futre Offer)clause to the rest of the bondholders."
To avoid this effect could generate a singular jump in public debt, Kicillof asked the mediator to request the judge Thomas Griesa to clarify that payment is agreed with the holdouts would not be voluntary, but the consequence of trading after a failure against Argentina.
THE MINISTER WANTS THE JUDGE GRIESA CLARIFY ANY DEAL WITH HOLDOUTS WOULD NOT BE VOLUNTARY
The minister restated the need to replace an injunction (stay) or not to innovate so that Argentina can pay about $ 539 million for foreign legilación bondholders who entered the exchanges I and II which were deposited to date on behalf of Bank New York Mellon with the Central Bank of Argentina, which were immobilized by Griesa.
Sources close to the negotiations are said to Infobae "missing file other aspects to close the negotiation, such as the holdouts that won the judgment receivable accept bonds, and payment can be made in January 2015 to avoid effects of RUFO clause.
Ready pool of banks to buy bonds
It is likely that from next week, if the minister is achieved reinstall an injunction, Axel Kicillof and colleagues begin to receive delegations from the investment funds that have the judgment in favor by about 1,650 million.
There would be four banks, as happened with JP Morgan bought bonds for 5,000 million receivedRepsol Argentine government in payment of their holdings of shares in YPF, would be willing to take the titles that receive the holdouts in early January 2015.'re UBS, Goldman Sachs, Citi and JP Morgan.
I'D PREPARED THE BOND ISSUE TO PAY THE REMAINING HOLDOUTS UP TO $ 10,000 MILLION
In addition, the government would have prepared a new bond issue for an amount between 8,000 to 10,000 million to provide funds and bondholders who did not enter swaps 2005 and 2010 to be presented in court in New York to claim the pari passu clause, following the ruling of Judge Thomas Griesa.
This amount would be the total debt in default would be held and no other holdouts 15,000 million mentioned by the Government in accordance with the opinion of a former official who participated in the last debt swap.
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