Argentina’s economy minister has bad news for those of us enjoying every minute of the country’s ridiculous default: It’ll probably be over next year, when “the instruments that the vulture funds have used for extortion,” a.k.a. the bludgeon Argentina gave them with which to hit it, a.k.a. the rights against future offers clause whose violation might or might not lead to Argentina’s disappearance from the map or something, expires.
“There will be a better possibility of dialogue with creditors who opted to stay out of the restructurings," Economy Minister Axel Kicillof said in an interview with Mexico's left-leaning La Jornada newspaper.
Paul Singer’s not convinced.
“Negotiating a resolution of its creditor disputes would have electrifying and instantaneous benefits for the country’s economy,” Elliott wrote. “However, in the past, many people have predicted that Argentina would take a turn toward ‘rational’ behavior only to see officials in Buenos Aires continue in the same radical and self-destructive decision-making.”
And, of course, Kicillof—who may have thought he sounded a bit too conciliatory amidst the recent bomb-throwing in Buenos Aires—immediately made Singer look rather sage in his cynicism, and pledge to continue to comb the Earth in search of warships, spaceships, whatever else of Argentina’s he might be able to get his hands on.
Late on Monday, the Argentine economy ministry published a statement clarifying "there has been no modification in the government's stance with regards to the situation with the holdouts". Its offer would still consist of a new debt swap with the same terms as the 2005 and 2010 ones, it said.
But wait! George Soros also has something to say: He would like to get paid. Now would be good, and he doesn’t care what kind of trouble it will get BNY Mellon into.
A group of funds including George Soros’s Quantum Partners LP and Kyle Bass’s Hayman Capital Management LP asked a London judge to protect a 1.3 billion-euro ($1.6 billion) investment in Argentinian bonds from New York lawsuits triggered by the country’s default.
The investors are “innocent third parties” in the dispute between Argentina and creditors who are refusing to participate in a restructuring deal, their lawyer Mark Hapgood said at a court hearing.
Argentina sees “better possibility” of holdout debt deal in 2015 [Reuters]
Elliott to Continue Argentine Asset Hunt as Sanctions Sought [Bloomberg]
Soros Fund Asks London Judge to Wade Into Argentina Bond Dispute [Bloomberg]