Wednesday, March 16, 2016

Recald warns against 'potential risks' that other bondholders demand 'same' deal

Héctor Recalde (L) speeks during the Lower House session to debate the holdouts bill.

Head of the Victory Front (FpV) caucus in the Lower House Héctor Recalde warned against what he called the “potential risks” that the approval of the holdouts bill poses for Argentina, affirming the Mauricio Macri administration carried out a “bad negotiation” with so called “vulture” funds.

Recalde delivered his message at the Lower House as lawmakers of the ruling Let’s Change coalition and its allies readied to give a green light to the project today's early morning, describing the country’s external debt history.

Recalde said it was first Néstor Kirchner and then Cristina Fernández who had to “put the inherited debt back on track.”

“The XXI century is characterized by a globalization of political and trade relations with lack of distribution and wealth, in benefit of international capital,” he warned. “Problems of foreign indebtedness are common currency these days.”

“Just like the UN says, States have the right to restructure the debt without suffering abusive measures,” the FpV MP said and quoted a line by economist Aldo Ferrer who passed away last week.

“The payment to vultures is not enough for credit agencies to approve investments in Argentina.”

“No one rules out that there is a potential risk that other bondholders demand the same,” Recaled affirmed pointing out the bill allows the government to “pay the professional fees to the lawyers that seized the frigate!” – Argentina’s navy frigate ARA Libertad was seized in a port in Ghana in 2012 when a court in that country benefited the vultures suing the country over its 2012 debt default.

“Is the solution fair? No, it is not fair; I think it was a bad negotiation,” Recalde said