- Title: USA: Argentina, holdouts begin second day of meetings in New York
- Date: 25th July 2014
- Summary: NEW YORK, NEW YORK, UNITED STATES (JULY 25, 2014) (REUTERS) JONATHAN BLACKMAN (LEFT) AND CARMINE BOCCUZZI (RIGHT), LAWYERS REPRESENTING ARGENTINA, WALKING JAVIER PARGAMENT, DEPUTY ATTORNEY GENERAL FOR ARGENTINA, GETTING OUT OF VEHICLE (BACK DOOR) FOLLOWED BY ANGELINA ABBONA, LAWYER FOR ARGENTINA'S TREASURY - PABLO LOPEZ, ARGENTINA'S FINANCE SECRETARY, AVOIDING CAMERA AND WALKING INSIDE
- Embargoed: 9th August 2014 13:00
- Location: Usa
- Country: USA
- Topics: Economy
- Reuters ID: LVAAU2Z8JW93VKT7JH67WD9JNWFS
- Story Text: Argentine officials and the holdouts began meetings with a court-appointed mediator, Daniel Pollack, in New York for a second day on Friday (July 25). The two sides met Pollack for about three hours on Thursday but they did not engage each other face to face.
Argentina is staring down the barrel of a second default in 12 years if it is unable, before a July 30 deadline, to reach an agreement with the holdouts, New York hedge funds.
U.S. District Judge, Thomas Griesa on Tuesday ordered that Argentine officials meet continuously with the holdouts, whom the government portrays as "vultures" picking over the carcass of its $100 billion (USD) default in 2002.
The hedge funds bought Argentine notes on the cheap after the country's 2001 default and spurned the terms of restructuring deals, under which 92.4 percent of creditors accepted huge writedowns.
Griesa ordered in 2012 that Argentina pay the holdouts $1.33 billion plus accrued interest - a ruling Latin America's No. 3 economy says it cannot comply with.
One of the lead holdouts, NML Capital Ltd, an affiliate of billionaire Paul Singer's Elliott Management Corp, said Argentina's government had made clear "that it will be choosing default next week."
Another default would pile more pain on an economy that is grappling with one of the highest rates of inflation in the world, an ailing currency and dwindling foreign reserves after a long banishment from global capital markets.
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