Saturday, August 16, 2014

Vanoli: Gov't in pursue of 'key' to 'unstick' vulture funds conflict

CNV chief Alejandro Vanoli speaks during the "Economy and Markets 2013-2015 transitio'' seminar held a the BA stock exchange.

Head of the CNV securities regulator Alejandro Vanoli considered Argentina’s current legal fight against so called “vulture funds” will end with the “interests” of both the country and investors being “preserved.” A “key” to 'unstick' the conflict is being pursued, the official said.

In statements to a radio show this morning, Vanoli analyzed the dispute between Argentina and holdouts suing the South American country over its defaulted bonds, saying he was confident the country’s interests and that of investors will be “preserved,” warning that a different scenario would “put at risk” debt restructurings carried out by other nations.

The CNV chief was also asked to give his opinion about the case of the Donnelley printing company that this week filed a bankruptcy claim and put 400 workers on the street, a decision that took President Cristina Fernández de Kirchner to publicly announce she was filing a formal complaint against the firm, accusing it of a "connection" with vulture funds.

“We will apply the anti-terrorist law. We filled a motion under charges of alterating the economic and financial order and terrorising of people,” the head of state expressed after blaming Donnelly with tax fraud and evasion back on Thrusday.

Vanoli said he would apply the “economic crimes law” that “sanctions practices in financial markets and the economic activity that are fraudulent such as, for instance, the use of privileged information, market manipulation, the non-authorized financial intervention or mechanisms of false information that could lead to prejudice against a population.” “This is connected with a possible fraudulent bankruptcy which was what the government denounced,” Vanoli said adding the AFIP tax bureau will take the claim to the US Securities and Exchange Commission (SEC) “because it is an American company” that filed for bankruptcy in a very “suspicious” way despite its proved “financial solvency.”

“In the CNV there is generally an individualization of who are in control of companies and of who have a significant minority participation in them but many times they hide behind partnerships located in tax havens, a racking up which requires information, investigation and the collaboration of many countries,” Alejandro Vanoli explained when queried about vulture funds also playing a role in other foreign companies working in Argentina.