Cabinet Chief Jorge Capitanich rejected the use of the term “technical default” in Argentina’s case, saying the country “regularly meets its obligations”. He described Judge Thomas Griesa’s ruling as “unprecedented in the history of mankind” since it prevented bondholder from being paid.

Monday, June 30, 2014

Gov’t reiterates willingness to negotiate, rejects ‘technical default’

Cabinet Chief Jorge Capitanich rejected the use of the term “technical default” in Argentina’s case, saying the country “regularly meets its obligations”. He described Judge Thomas Griesa’s ruling as “unprecedented in the history of mankind” since it prevented bondholder from being paid.

“Argentina’s stance is always the same: it is willing and open for dialogue to create equitable, fair and legal negotiating conditions for 100% of bondholders,” Capitanich stressed.

The official pointed out that the government’s proved its willingness to pay last week by paying restructured bondholders, and criticised US Judge Griesa’s decision to block the payment, ordering the Bank of New York Mellon to return the money the government had deposited.

“This is an unprecedented case,” Capitanich stated. “It is the first time a judge intends to alter a contract and prevent the payment to a restructured bondholder that agreed willingly, in accordance with the same New York laws that he [Griesa] represents”.

“The case is a subject of study internationally,” the Kirchnerite official said to reporters when asked whether Argentina plans to take its claims to the International Court of Justice in The Hague. Capitanich said the government reserves the right to “take the case to international organizations”.