The Republic of Argentina is prohibited from carrying out the proposal of the Economy Minister,” Judge Griesa affirmed.

Friday, June 20, 2014

US Judge Griesa bans Argentina from paying bondholders in BA

“ The Republic of Argentina is prohibited from carrying out the proposal of the Economy Minister,” Judge Griesa affirmed.

US Federal Judge Thomas Griesa, ratified today through an official letter that Argentina’s proposal to carry out a debt exchange and pay its bondholders in Buenos Aires represents a “violation of the rulings and procedures.”

A few hours after President Cristina Fernández de Kirchner announced her administration is willing negotiate with bondholders in New York, Judge Griesa warned against changing the payment jurisdiction, as Economy Minister Axel Kicillof suggested last Tuesday during a press conference.

In that sense, the document signed by the magistrate expressed the Government’s proposal:

“is in violation of the ruling and procedures now in place in the Southern District of New York, and the Republic of Argentina is prohibited from carrying out the proposal of the Economy Minister.”

Last Monday, the US Supreme Court declined to take Argentina’s case against the so called ‘vulture funds’, putting the country one step closer to a financial default.

1. In his June 1 7, 2014 speech, Argentina's Economy Minister Axel Kicillof proposed that 
Argentina initiate steps to carry out a debt exchange to pay the exchange bondholders in 
Argentina under Argentine law. 

2. This court rules that the above proposal of the Economy Minister is in violation of the 
rulings and procedures now in place in the Southern District ofNew York, and the 
Republic of Argentina is prohibited from carrying out the proposal of the Economy 
Minister. 

SO ORDERED. 
Dated: New York, New York 
June 20, 2014 
C

http://www.buenosairesherald.com/article/162643/us-judge-griesa-bans-argentina-from-paying-bondholders-in-ba