Friday, January 2, 2015

Gov't wants to pay 'vultures' in 'fair conditions'

Economy Minister Axel Kicillof (file photo).

Economy Minister Axel Kicillof has affirmed the Argentine government wants to pay holdout creditors involved in the so called “vulture funds” case, but only if it is done in “fair and sustainable conditions”.

Kicillof added the government cannot pay more than the money offered to exchange bondholders in the 2005 and 2010 debt renegotiations, as it would be illegal.

“What we can offer is what we already offered to the 2005 and 2010 exchange bondholders. This is what is supported by Argentine law,” he told reporters today.

As the Rights upon Future Offers (RUFO) clause expired yesterday, the negotiation scenario could have changed, as Argentina no longer has to fear its restructured debt could be endangered with a payment for “vultures” that exceeds the 2005 and 2010 offers.