ARGENTINA: Cabinet Chief Jorge Capitanich insists on fair negotiation conditions for 100 percent of bondholders as debt negotiations underway in New York

Record ID: 449169

  • Title: ARGENTINA: Cabinet Chief Jorge Capitanich insists on fair negotiation conditions for 100 percent of bondholders as debt negotiations underway in New York
  • Date: 30th July 2014
  • Summary: EXTERIOR OF GOVERNMENT HOUSE ARGENTINE CABINET CHIEF JORGE CAPITANICH ARRIVING AT NEWS CONFERENCE IN GOVERNMENT HOUSE (SOUNDBITE) (Spanish) CABINET CHIEF JORGE CAPITANICH, SAYING: "We are in the final stage in the normalization of Argentina's financial obligations in the framework of the legal continuity of the state. Of debt that wasn't generated by this government, a debt paid by this government, and in this context we are waiting for this last phase and we understand that the conditions should be those that Argentina has consistently outlined. Negotiation conditions that are just, equal, legal and sustainable for 100 percent of the bondholders." VARIOUS OF PEOPLE WALKING IN FRONT OF CURRENCY EXCHANGE VARIOUS OF MAN WRITING DOWN EXCHANGE RATES IN A NOTEBOOK EXCHANGE RATE DISPLAY
  • Embargoed: 14th August 2014 13:00
  • Keywords:
  • Location: Usa
  • Country: USA
  • Topics: International Relations,Economic News
  • Reuters ID: LVA4O95HK3QRNBJSFRTVIRVYGCLU
  • Story Text: Argentina was in a race against time on Wednesday (July 30) to avert its second default in 12 years, needing either to cut a deal by the end of the day with holdout investors suing the country or to win more time from a U.S. court to reach a settlement.
    Argentine Cabinet Chief Jorge Capitanich reiterated the country's insistence on fair negotiation conditions for 100 percent of the bondholders.

    "We are in the final stage in the normalization of Argentina's financial obligations in the framework of the legal continuity of the state. Of debt that wasn't made by this government, a debt paid by this government and in this context we are waiting for this last phase and we understand that the conditions should be those that Argentina has consistently outlined. Negotiation conditions that are just, equal, legal and sustainable for 100 percent of the bondholders," said Capitanich during his daily briefing at the Government House.
    Argentine Economy Minister Axel Kicillof on Tuesday (July 29) held the first face-to-face talks with the principals of the funds, who demand full repayment on bonds they bought at a discounted rate after the country last defaulted in 2002. Latin America's No. 3 economy has for years fought the hedge funds that rejected large writedowns, but after exhausting legal avenues, it faces default if it cannot reach a last-minute deal.
    As Kicillof was leaving early morning meetings in New York on Wednesday (July 30) he refused to comment.

    "As you can understand, I cannot give information about the meeting that has not finished yet," said the minister.
    The government has until the end of Wednesday (0400 GMT on Thursday July 31) to break the deadlock. If it fails, U.S. District Judge Thomas Griesa will prevent Argentina from making the July 30 deadline for a coupon payment on exchanged bonds, thereby pushing the country into a technical default.
    Bank sources said a group of private banks in Argentina was working up a plan to offer up to $250 million as a guarantee to convince lead holdouts of the nation's good faith and convince Griesa to re-establish the stay.
    Representatives from Banco Piano are among a delegation from Argentina's banking association, known as Adeba, that has traveled to New York to join the talks.
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