Saturday, April 23, 2016

Argentina moves over its default funds that had 15 years in check – El Comercio (Ecuador)

Argentina came out on Friday, April 22, 2016, a default 15 years to pay creditors funds multi-million dollar debt dollars provided by the markets and void justice New York retaliation imposed for disobeying a statement.

the government of President Mauricio Macri announced to New York judge Thomas Griesa made “full payment” to “vulture funds”, well known to buy at very low price bond debt of bankrupt countries, and less than two hours later the end of the default formalized.

“the conditions have been met. Accordingly, precautionary measures are annulled in all cases, “said Griesa in New York just received payment certificates.

The hedge fund NML Capital, the financier Paul Singer, was the creditor more He claimed, with more than 2,426 million dollars.

“all the payments made on Friday litigants funds was $ 9,300 million. It is estimated that the final number of arrangements amount to the USD 10 500 million , which would represent a final removes 44% on the amount of legal claims, “explained a statement from the Ministry of Finance released the Friday night.

the decision to Griesa also “allow the release of coupon payments owed to bondholders swap 2005 and 2010, which will be implemented within the next three weeks,” he added note.

“the group of retail holders Italians represented by Nicola Stock” was also paid, the statement said.

Singer just qualify Macri “ champion economic reforms “in Time magazine, which ranked him among the 100 most influential people in the world.

the United States said that Argentina” turned the page of a difficult period of its history. ”

the return to the markets and to the default shows the “enormous policy change” undertaken by Macri and is the result of the “desire of different political parties (Argentine) to work together,” said US secretary Treasury Jacob Lew said in a statement.

Argentina captured on Tuesday 16 500 million by issuing bonds, in its return to the international financial system after being sidelined from the colossal moratorium of 2001 by almost 100 000 million.

the ministry of Making added that “the difference between this amount (USD 16,500 million) and paid to creditors is about us 7,200 million, from the day of the date will swell the reserves the Central Bank and will be used mainly to finance infrastructure projects. “

” the total commission paid to underwriters seven banks was 0.18% of the issue, the lowest in our history ” he said.

“Chau default”
“Cautionary lifted. Enough bonds. Enough stocks. #ChauDefault Starts a new stage. Argentines, ready to start and grow, “he said Finance Minister Alfonso Prat-Gay on his Twitter account.

” This arrangement reconnects us with the world. Make a difference in direction and attitude of this administration to solve the problems. It is the end of a long journey that should never exist and that was tremendously costly for the country, “Prat-Gay said.

The third Latin American economy” needs this year more than 30,000 million dollars financing to pay ‘holdouts’ serve national, private and provincial public debt, “said Dante Sica, the consultant Abeceb.com in a report to AFP.

Argentina issued debt to 3, 5, 10 and 30 years maturity, with an average interest of 7.2%.

the minister accused the previous government of president Cristina Kirchner (2007-2015) of isolate the country from international markets.

Kirchner waged a relentless battle against the funds, which he accused of “usurers”. He raised the conflict to achieve a return of 140 countries in the United Nations against the “vultures”.

But lost the case. Judge Griesa gave reason to funds and also supported the Court of New York Appeals and the US Supreme Court to refuse to take the case.

Kirchner offered him the applicants receive the same benefit of 93% of the creditors who agreed to enter swaps 2005 and 2010, with debt of up to 65% of capital.

even President Barack Obama he called on Kirchner to “finish fix debt” in ‘default’.

Prat-Gay success to agree with 220 financial groups in a few weeks since talks began attributed after assume Macri on 10 December.

There are still outside arrangements with creditors defaulted bonds for about 3,500 million dollars.

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