Tuesday, July 29, 2014

Kicillof joins talks as meeting with US court-appointed mediator Pollack in recess

File photo of US Court-appointed mediator Daniel Pollack.

Today's meeting between an Argentine delegation and mediator Daniel Pollack in New York is currently in recess, with Economy minister Axel Kicillof flying in at the last minute to witness talks while the parties attempt to avoid possible default as a result of the ongoing dispute with holdout investors ahead of tomorrow's deadline.

According to sources cited by Télam, after just over two hours of talks the meeting was suspended, although it is expected to resume later today. No information was given over the reasons for the recess, or the subjects discussed by Pollack and the delegation during the meeting.

Kicillof, meanwhile, entered Pollack's office after flying in from Caracas, where he had accompanied President Cristina Fernández de Kirchner at today's Mercosur summit in the Venezuelan capital. The minister will oversee the second section of talks once the recess comes to an end.

Delegates of the Economy Ministry - Attorney at law Angelina Abbona, Finance Secretary Pablo López and Legal and Administrative Secretary Fedrico Thea had met with US court-appointed Special Master Pollack to start the fifth – and last – round of negotiations ahead of this week’s deadline for the South American country to avoid a default.

Argentines are only one day away from finding out whether the blockade set by New York Judge Thomas Griesa on the country’s funds in the United States will end with a “technical default” scenario for the South American nation, following a 1.3 billion dollar dispute filed by so called vulture funds suing the country over its defaulted bonds.

On Monday, Mr. Pollack explained Argentina's representatives will not be holding face-to-face meeting with the holdouts hedge funds today.

Negotiations have made scant progress in the past three weeks, in a race against the clock to prevent the country from defaulting for the second time in 12 years.

Argentina argues it cannot cut a deal now that risks breaking a clause barring the country from offering better terms to investors than those in the bond swaps that were accepted by 92.4 percent of its creditors in 2005 and 2010.

The government has repeatedly stated that the Argentine delegation is working to create “fair, equitable and sustainable negotiating conditions for 100 percent of bondholders.”

Meanwhile, earlier today, Cabinet Chief Jorge Capitanich did not rule out the possibility of Economy Minister Axel Kicillof attending the New York meeting. Mr. Kicillof is currently in Venezuela, joining President Cristina Fernández de Kirchner in the MERCOSUR summit.

“It is a decision he will take along with the President,” Capitanich said in his daily press briefing at Government House.