Argentina

  • 18 Sep 2014 at 3:12 PM

Argentina Ready To Declare War Over Semantics

There’s been a major diplomatic incident in Buenos Aires: It seems the U.S. chargé d’affaires in Argentina has committed the unpardonable sin of telling the truth by saying that it might be a good idea for the country to “get out of default.”

Well, this did not sit well with Foreign Minister Hector Timerman, for, as you may have heard, the Argentine government is of the magical realist persuasion in which if you don’t pay your bills you’re not in default if you say you tried really hard to pay them, like by putting the onus on the Bank of New York Mellon and then firing them and throwing them out of the country, regardless of what all the ratings agencies and ISDA and everyone else says. To say otherwise would be an impermissible intrusion into the internal affairs of a sovereign country, unlike, say, suggesting that a president make a troublesome judge disappear. Read more »

Sure, its plan to offer investors the chance to exchange their New York-law debt for Argentine- or French-law debt is dead in the water. But when it comes to wholly symbolic acts in the name of the principle of not having to pay your debts, Argentina simply can’t help itself. Read more »

Whatever else you may say of him—and Argentina has said a lot: for instance, that he’s incompetent and hopelessly biased against it—you must admire Daniel Pollack’s persistence. Ever since being handed the thankless and hopeless job of trying to sort out in a few weeks what 13 years of litigation just made worse, the court-appointed mediator has suffered the slings and arrows, listened to what one imagines are endlessly repetitive speeches by Argentine politicians and issued many press releases pretending that there is the remotest chance of a settlement. And, God bless him, even after Argentina basically said it wasn’t interested in negotiating anymore, he’s still at.

Alas, the results are the same. Read more »

Would he go so far as to describe his fellow hedge fund manager’s business tactics as hostage situation-esque? Yes, yes he would. Read more »

  • 27 Aug 2014 at 1:02 PM
  • Banks

BNY Mellon Loses Lucrative Argentine Market

Just kidding: There was nothing lucrative at all about the Argentine market for BNY, only trouble. But Cristina Kircher & co. have been kind enough to deal with that problem for their estranged trustee bank. Read more »

So it seems—surprise, surprise!—that Argentina hasn’t really been all that serious about trying to strike a deal with Paul Singer, and that the world’s banks aren’t especially interested in absorbing much risk to curry favor with President Cristina Kirchner. So Singer’s going back to a strategy that, while unsuccessful in actually getting him any of his money, has been very, very successful at infuriating people in Buenos Aires. Call it the “ship-seizing” strategy. Or, in this case, the “money-embezzled-by-Cristina-Kirchner’s-old-buddy-seizing” strategy. Read more »

With its peso currency at record lows, foreign reserves down more than 5 percent over the last year and vast shale oil and gas resources laying undeveloped in its southern Patagonia region, Argentina is desperate to tap foreign financing. But the debt case, which stems from Argentina’s default on nearly $100 billion in sovereign bonds 12 years ago, is blocking its access to the international bond market. “Today we are in the hands of an international financial power comprised of small, voracious interests that form a real international mafia,” Jorge Capitanich, the Cabinet chief and government spokesman, told reporters in Buenos Aires. Many Argentines side with their government against a group of hedge funds that rejected the country’s 2005 and 2010 debt restructurings in which holders received less than 30 cents on the dollar. Holdout funds led by Elliott Management Corp and Aurelius Capital Management bought Argentine bonds at a discount before and after the 2002 default and have pressed their demand for payment of 100 cents on the dollar in the U.S. courts. [Reuters]