Sunday, December 14, 2014
Kicillof pleased with debt swap results
Economy minister Axel Kicillof has praised the results of a recent debt swap offer on the Boden 2015 bonds, affirming that low uptake on cashing out the titles reflected confidence in the government's financial policies.
"The government put a pile of money worth 6.7 billion dollars on the table to cash out, but the bondholders decided not to," the politician said today, adding that "the only possible reading" of the negative of many investors to get rid of titles was that of "a show of trust".
"There is a very biased interpretation happening on the other side, and somewhat self-serving," he maintained, when asked about economists and analysts who labelled the scheme a failure.
Just 2 percent of Boden 2015 holders opted to cash out, meaning the government used just 175 million of the 6.7bn dollars earmarked in case of full participation. A further 377 million dollars were swapped for Bonar 2024 bonds, with a new emission on those titles capturing another 286 million dollars out of a possible US$3bn.
Kicillof told Nacional Rock that the swap was intended to prove the govvernment's capacity to meet services on the Boden 2015, which expires next year.
"Since we are aware that the vulture fund situation has created a lot of rumours over Argentina's ability to pay, we made this offer to bondholders," he explained.
"We put a pile of bills on the table and we said to creditors: pick what you want, cash or Argentine bonds. We have been left with great trust because only 175 million of 6.7 billion said I will take the dollars."
"The government put a pile of money worth 6.7 billion dollars on the table to cash out, but the bondholders decided not to," the politician said today, adding that "the only possible reading" of the negative of many investors to get rid of titles was that of "a show of trust".
"There is a very biased interpretation happening on the other side, and somewhat self-serving," he maintained, when asked about economists and analysts who labelled the scheme a failure.
Just 2 percent of Boden 2015 holders opted to cash out, meaning the government used just 175 million of the 6.7bn dollars earmarked in case of full participation. A further 377 million dollars were swapped for Bonar 2024 bonds, with a new emission on those titles capturing another 286 million dollars out of a possible US$3bn.
Kicillof told Nacional Rock that the swap was intended to prove the govvernment's capacity to meet services on the Boden 2015, which expires next year.
"Since we are aware that the vulture fund situation has created a lot of rumours over Argentina's ability to pay, we made this offer to bondholders," he explained.
"We put a pile of bills on the table and we said to creditors: pick what you want, cash or Argentine bonds. We have been left with great trust because only 175 million of 6.7 billion said I will take the dollars."
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