ARGENTINA: President Cristina Fernandez says 'vulture funds' are leading an "anti-Argentina campaign".

Record ID: 447141

  • Title: ARGENTINA: President Cristina Fernandez says 'vulture funds' are leading an "anti-Argentina campaign".
  • Date: 1st November 2012
  • Summary: BUENOS AIRES, ARGENTINA (NOVEMBER 1, 2012) (ORIGINALLY 4:3) (REUTERS) ARGENTINE PRESIDENT CRISTINA FERNANDEZ WITH OTHER GOVERNMENT OFFICIALS AND PEOPLE APPLAUDING PEOPLE CHEERING FERNANDEZ AT PODIUM GOVERNMENT OFFICIALS LISTENING TO FERNANDEZ SPEAK (SOUNDBITE) (Spanish) ARGENTINE PRESIDENT CRISTINA FERNANDEZ, SAYING: "We're really facing a campaign against Argentina because of the success our economic model has had, despite the fact that, internally, they criticized what we were doing and we were criticized externally for what we were doing fundamentally by the foreign multinationals." AUDIENCE APPLAUDING (SOUNDBITE) (Spanish) ARGENTINE PRESIDENT CRISTINA FERNANDEZ, SAYING: "They make more money if we don't pay, rather than if we do. Well, I have some very bad news for them; we're going to pay [our debt]. [OFF CAMERA: AUDIENCE APPLAUDING] We are going to pay. We are going to pay. With dollars. [ON CAMERA] With dollars. [OFF CAMERA: AUDIENCE APPLAUDING] Because [ON CAMERA] we are going to honour the commitments that we've made, like we've honoured all our commitments. And if we committed ourselves and took on debt securities, it's because we knew we would be able to pay them back." AUDIENCE LISTENING TO FERNANDEZ SPEAKING FERNANDEZ SPEAKING (SOUNDBITE) (Spanish) ARGENTINE PRESIDENT CRISTINA FERNANDEZ, SAYING: "What is more important? To honour the trusts of the 93 percent [of bond holders] - of whom 60 or so percent agreed in 2005 and then 93 percent in 2010 - or the trust of the vulture funds who don't even have a tax address in the United States? Which even U.S. authorities admit." VARIOUS OF PEOPLE APPLAUDING AND LISTENING (SOUNDBITE) (Spanish) ARGENTINE PRESIDENT CRISTINA FERNANDEZ, SAYING: "I am going to say to the court in New York and all the judges that we are going to take care of the bonds of their own citizens. Most of [the bond holders] aren't Argentines. They are Americans. Of the 93 percent that made the agreement, a big chunk of them are Americans." PEOPLE APPLAUDING VARIOUS OF FERNANDEZ AND THE AUDIENCE APPLAUDING AT THE CLOSE OF THE EVENT
  • Embargoed: 16th November 2012 12:00
  • Keywords:
  • Location: Argentina
  • Country: Argentina
  • Topics: International Relations,Economy,Politics
  • Reuters ID: LVACTX981X6H5ICV7WWMELNF2354
  • Story Text: Argentine President Cristina Fernandez on Thursday (November 1) criticized a U.S. court decision that could force the country to repay creditors who have sued to collect on bonds in default since 2002.
    Fernandez said "vulture funds" that have sued to collect on the Argentine bonds are leading a campaign against her country to try to trigger a new debt crisis.
    "We're really facing a campaign against Argentina because of the success our economic model has had, despite the fact that, internally, they criticized what we were doing and we were criticized externally for what we were doing fundamentally by the foreign multinationals," Fernandez said.
    She said banks make money as long as debtors owe them money and have little interest in allowing Argentina to become debt free.
    "They make more money if we don't pay, rather than if we do. Well, I have some very bad news for them; we're going to pay [our debt]. [OFF CAMERA: AUDIENCE APPLAUDING] We are going to pay. We are going to pay. With dollars. [ON CAMERA] With dollars. [OFF CAMERA: AUDIENCE APPLAUDING] Because [ON CAMERA] we are going to honour the commitments that we've made, like we've honoured all our commitments. And if we committed ourselves and took on debt securities, it's because we knew we would be able to pay them back," said Fernandez.
    The president's remarks came on the heels of a U.S. appeals court ruling that could force the country to repay holdout creditors who rejected 2005 and 2010 debt swaps, through which the country restructured about 93 percent of its defaulted debt.
    "What is more important? To honour the trust of the 93 percent [of bond holders] - of whom 60 or so percent agreed in 2005 and then 93 percent in 2010 - or the trust of the vulture funds who don't even have a tax address in the United States? Which even U.S. authorities admit," said Fernandez.
    Friday's (October 26) decision at a federal appeals court in New York ruled that Argentina violated bond provisions to treat all creditors equally when it made payments to creditors who accepted the swaps while refusing to pay the holdouts. It said Argentina must pay the holdouts every time it services the restructured bonds.
    "I am going to say to the court in New York and all the judges that we are going to take care of the bonds of their own citizens. Most of [the bond holders] aren't Argentines. They are Americans. Of the 93 percent that made the agreement, a big chunk of them are Americans," Fernandez added.
    Argentina has restructured about 93 percent of the roughly $100 billion it defaulted on a decade ago. Holdout creditors who rejected the swaps continue to press in courts worldwide for full repayment on the bonds.
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