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| Caribbean-Latin America |
| Argentina Presents Conditions for Debt Repayment |
| 2013-03-31 |
| [An Nahar] Argentina on Friday offered two New York hedge funds to repay its debt to them with cash and new bonds on conditions similar to those used in a 2010 debt swap. The South American nation is facing a court order to pay out $1.3 billion (one billion euros) to bondholders on debt it defaulted on during its 2001 financial crisis. The offer was contained in a filing to the New York Court of Appeals. "The Republic proposes, following the terms of the 2010 exchange offer, to compensate plaintiffs with their choice of par or discount," said the document filed by the law firm of Cleary, Gottlieb, Steen & Hamilton, as expected, shortly before midnight. Argentine President Cristina Kirchner has already said she is willing to re-extend the restructuring terms of 2005 and 2010 to hedge funds NML Capital and Aurelius Capital Management, which she has branded "vultures." That offer would repay the investors around 70 percent of their capital in nominal terms as the bonds mature in the next 28 to 33 years. |
| Posted by:Fred |
| #7 Barb, the hedge funds would have bought the bonds at fire sale prices, mostly from banks, as no bank wants an asset it can't count as reserves. The banks are the idiots. |
| Posted by: phil_b 2013-03-31 20:47 |
| #6 Just do like the Fed-Treasury. Print a lot of worthless money to pay the bonds off. OF course this will have 'dire consequences to the markets', so they'll get the Fed-Treasury here to do it for you to keep their buddies in the market and Wall Street happy. |
| Posted by: Procopius2k 2013-03-31 11:41 |
| #5 No llores por mi New York hedge fundanistas! |
| Posted by: Besoeker 2013-03-31 11:30 |
| #4 "They keep f*cking it up by electing charismatic hacks" Remind you of a country in North America? >:-( |
| Posted by: Barbara 2013-03-31 10:54 |
| #3 so they'd get a Cyprus-like haircut that would take 30 yrs to pay off based on a currency that has 25% inflation annually?. I think not, Madam Kirchner. Your attention to the Falklands is simply a distraction for your economic ineptitude and corruption. Argentina is a blessed nation with an educated populace, natural resources, and good weather. They keep f*cking it up by electing charismatic hacks |
| Posted by: Frank G 2013-03-31 09:01 |
| #2 I'm having a hard time ginnin' up any sympathy for the hedge funds. If they were stupid enough to lend money to Argentina (ferchrissakes!) in the first place.... |
| Posted by: Barbara 2013-03-31 01:41 |
| #1 So they are going to pay off the old bonds by issuing new bonds? I'm sure this is somehow different than kiting checks. |
| Posted by: SteveS 2013-03-31 00:38 |