Monday, August 25, 2014

Gov't defends new debt swap plan: 'BoNY has breached the contract'

Cabinet Chief Jorge Capitanich defended the Executive’s plan to replace the bank of New York Mellon (BoNY) as trustee of Argentina’s restructured bonds saying it has “breached the trust agreement.”

“There are two main issues here. The trustee by contract was the bank of New York Mellon and it has breached the contract, which is why it is being replaced by (Banco) Nación. And on the other hand, a change of payment venue is established. It is the way for the debtor to honour its commitments,” the official said in his daily press briefing at government house.

Capitanich stressed that the proposed debt swap, to be debated at Congress today, shows Argentina’s “willingness and ability to pay despite the unfounded, irrational decisions of (US) judge Thomas Griesa.