ARGENTINA: Argentines in Buenos Aires weigh in on failure of debt negotiations and country's recent default

Record ID: 449164

  • Title: ARGENTINA: Argentines in Buenos Aires weigh in on failure of debt negotiations and country's recent default
  • Date: 1st August 2014
  • Summary: BUENOS AIRES, ARGENTINA (AUGUST 1, 2014) (REUTERS) OBELISK IN DOWNTOWN BUENOS AIRES VARIOUS OF EXTERIOR OF GOVERNMENT HOUSE VARIOUS OF CABINET CHIEF JORGE CAPITANICH ENTERING NEWS CONFERENCE AT GOVERNMENT HOUSE (SOUNDBITE) (Spanish) CABINET CHIEF JORGE CAPITANICH, SAYING: "From the judge, in light of what we have discussed at length, of course we cannot have positive expectations because he has always held partial views. What is certain is that the judge has to resolve the pending issues and these pending issues have to do with multiple motions on behalf of multiple actors that are involved in the payment process." VARIOUS OF PEOPLE WALKING TO WORK
  • Embargoed: 16th August 2014 13:00
  • Keywords:
  • Location: Argentina
  • Country: Argentina
  • Topics: International Relations,Economic News
  • Reuters ID: LVA2S79R2ACB4AMIOA35ZTYEN3QJ
  • Story Text: People in Buenos Aires on Friday (August 1) expressed frustrations after Argentina defaulted for the second time in 12 years on Thursday (July 31).
    During his daily media briefing Cabinet Chief Jorge Capitanich said the government did not have positive expectations regarding the outcome of Friday's court hearing with U.S. District Judge Thomas Griesa.

    "From the judge, in light of what we have discussed at length, of course we cannot have positive expectations because he has always held partial views. What is certain is that the judge has to resolve the pending issues and these pending issues have to do with multiple motions on behalf of multiple actors that are involved in the payment process," said Capitanich.
    Latin America's No. 3 economy defaulted after failing to cut a deal with holdout creditors suing it for full payment on bonds bought at a steep discount after a $100 billion debt default in 2002.
    Luz Prieto, an employee at a bank, said she was expecting negative consequences as a result of the country's default unless a deal could be reached soon.

    "They have to have a good idea to move forward with this because and something very big is on its way. I work in a bank and I know about the situation more or less. [Journalist asks: What do you think could happen with this technical default?] ummmaybe a run on the banks," she said.
    The government maintains it has not defaulted because it made a required interest payment to a bank intermediary on one of its bonds. But U.S. District Judge Griesa blocked that deposit in June, saying it violated his ruling that Argentina settle their dispute with holdout investors first.

    "They gave us an American arbitrator and so we have to wait and see what they say," said retiree Rubes Resiurcio.
    Felipe Portugal, a Brazilian living and working in Argentina, said that the country dealing with the consequences of decisions made in the past.

    "I see Argentina as a very nice country and full of opportunities but unfortunately some decisions from the past have new consequences. If we change this behaviour for the future, I think that Argentina has a lot of potential," he said.
    Although the relative calm surrounding the country's current debt crisis is a far cry from the mayhem in 2001-2002 when the economy collapsed around a bankrupt government and millions of Argentines lost their jobs, Eduardo Daiko said Argentina should be doing much better that it is.

    "I am not satisfied with being better off than in 2001, after 13 years we should be doing much better," said Daiko.
    Griesa had ordered the nation to pay $1.33 billion plus interest to NML Capital, a unit of Elliott Management Corp, and Aurelius Capital Management, the two leading U.S. hedge funds who were not among those who agreed to accept new bonds after the nation defaulted in 2002.
    Argentina argues that by depositing $539 million for a scheduled June 30 coupon payment at the Central Bank of Argentina in the account of Bank of New York Mellon, the trustee, that it had satisfied its obligation to pay its debts.
  • Copyright Holder: REUTERS
  • Copyright Notice: (c) Copyright Thomson Reuters 2016. Open For Restrictions - http://about.reuters.com/fulllegal.asp
  • Usage Terms/Restrictions: None
Register