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Mittwoch, 9. Juli 2014

Vulture funds are not victims, they are just extortionists By Axel Kicillof, Minister of Economy and Public Finance of Argentina

Vulture funds are not victims, they are just extortionists 
By Axel Kicillof, Minister of Economy and Public Finance of Argentina 

Dear Sir,
I am writing to set the record straight regarding Jay Newman´s oped “We holdouts are open to
compromise but Argentina has to talk”, published July 8, 2014.
It is a paradox that a vulture fund like Elliott would attempt to clean its reputation by alleging to
represent pensioners and betrayed bondholders. The only truth is that Elliot's NML Capital, which is
based in the Cayman Islands to avoid paying taxes in the US, unlike the people it claims to represent,
purchased Argentine bonds in 2008 and immediately sued Argentina. These bonds, defaulted in
2001, were bought with the sole purpose of obtaining a favorable judgment to make an exorbitant
profit.
Mr. Newman is attempting to portray Argentina as a country that does not negotiate. This is outright
false. Following lengthy negotiations, Argentina offered two debt exchanges, in 2005 and 2010, which
were voluntarily accepted by 92.4% of the country´s bondholders.
The vulture funds never negotiated. They never lent money to Argentina. NML purchased bonds at a
value close to US$50 million. Judge Griesa's order would allow NML to cash more than US$800
million, securing them a 1,600% yield in only six years. If instead of litigating, NML had accepted the
debt exchanges offered by Argentina it would have tripled, or even quadrupled, its investment. But
they want more than a 300% profit, because they are not bona fide lenders to emerging countries,
they are what they are: judicial and financial vultures.
Argentina has made clear its willingness and capacity to negotiate since 2003. After the surprising
and unjust judgment of the US judicial system, I personally met yesterday with Mr. Daniel Pollack,
Special Master appointed by Judge Griesa, proving our will to move forward in a dialogue to ensure
fair, equitable and legal conditions, taking into account the interest of 100% of bondholders.
Therefore, Argentina has requested that Judge Griesa reinstates the stay order. But the vulture funds
opposed the petition. This shows their true colors: they do not want to negotiate; they either get their
claim in full or try to force Argentina into default. But this will not happen: Argentina will defend its
successful debt restructuring process by paying its bondholders. ¿What kind of equitable negotiation,
involving hundreds of billions of dollars, can be conducted in only three weeks?
The vulture funds never wanted to abide by the terms accepted by the overwhelming majority of
creditors. They seek to extort a sovereign country. They want privileged conditions and they will stop
at nothing to get their way: they will interrupt a flow of payments to Argentina's exchange bondholders
denying these bondholders’ property that is rightfully theirs; they will speculate with the future of 40

http://www.mecon.gov.ar/wp-content/uploads/2014/07/08-07-2014_eng.pdf

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