Expired Debt Clause Still Alive And Well In Argentine Economy Minister’s Head

Related: it won't be meeting any of the holdouts' demands any time soon.
Author:
Updated:
Original:

Paul Singer is willing to part with say, 15% of what Argentina owes him—if that will smooth things over with the Argentines. Alas, it will not, because, as Economy Minister Axel Kiciloff says but does not explain, if he gives Singer such a slight trim, he might have to find a way to glue the hair back all of those creditors who did take the 70% haircut, even though everyone else lost the right to demand that when the calendar turned to 2015.

The group of litigants led by billionaire Paul Singer’s Elliott Management are “obstinate” and only offered Argentina a 15 percent discount on the $1.6 billion a New York-based judge ruled they are owed, Kicillof said today in a radio interview. Settling at those terms would trigger further demands from other holdouts, meaning Argentina could have to pay as much as $20 billion.

“We can’t mortgage the country like they did in the ’90s which ended in the biggest bankruptcy in Argentine history,” Kicillof said on Radio Del Plata. “The president has said ‘not with this president’ and I agree with her.”

And so, on to the next president, and probably the next year:

With presidential elections scheduled for Oct. 25 and Fernandez unable to run for re-election, investors have held on to government bonds on the expectation the next administration will resolve the conflict.

Argentina Won’t Meet Holdout Demands, Kicillof Says [Bloomberg]

Related