Thursday, September 11, 2014

Lower House okays debt bill, project signed into law

File photo shows Congress Lower House.

Lawmakers in the Lower House of Congress passed the Executive’s Sovereign Payment bill today, after almost 16 hours of debate, by 134 votes in favour, 99 against and 5 abstentions.

The special session began at noon yesterday and the vote took place minutes after 5.30 am today. passed the bill establishing the local payment agent for Argentina’s restructured and holdout creditors, a new voluntary debt swap, and the creation of a permanent bicameral debt oversight committee.

Ruling Victory Front (FPV) legislators approved the measure, which is now law, with barely no support from opposition blocs.

Lawmaker Roberto Feletti (FPV), the president of the Lower House Budget committee, asserted that the bill "aims to defend the state's autonomy," highlighting the need for "a massive vote to preserve the debt restructuring process already carried out."

"There is no doubt at all that this process of restructuring debt has allowed 92 percent of bondholders to enter," Feletti pointed out upon opening the session today, adding that the world "is not seeing a prosperous age, clearly because financial is forcing developed countries into debt."

Opposition figurehead Elisa Carrió, however, slammed the idea, promising to walk out of the chamber before voting as the proposal "sickened" her.

"When I was here in the approval of the Iran agreement I had to leave because the applause sickened me, I will not feel that sickness again," the UNEN lawmaker fired.

"I understand that the situation is difficult, I went through the applause for the 2001 default, and it is not that I wanted to pay the debt."

"The project sent to Congress to change the holdouts' payment location is far from being a solution. Quite the opposite, it will make the possibility of reaching an agreement even more difficult," the UNEN lawmaker fired.