Hugh's Feed
Jul 8, 2014

Argentine presidential hopefuls tip-toe around debt negotiations

BUENOS AIRES (Reuters) – Argentina’s top presidential candidates say a deal to avoid a debt default is essential for their economic reform programs but they are not attacking the government’s hard stance against “holdout” investors because it could be political suicide.

Three main front runners have emerged ahead of next year’s election. All are more business-friendly than outgoing President Cristina Fernandez, a fiery populist who denigrates holdout hedge funds suing Argentina as “vultures” out to bankrupt the government in their pursuit of huge profits.

Jul 8, 2014

Argentina says to meet again with debt mediator on Friday

BUENOS AIRES, July 8 (Reuters) – Argentine officials will
meet again on Friday with a mediator appointed by a U.S. court
to resolve its legal battle with hedge funds suing for full
repayment of defaulted sovereign bonds, the government said on
Tuesday.

President Cristina Fernandez’s government has until July 30
to reach a deal with the funds in a dispute that has pushed
Latin America’s No. 3 economy to the brink of its second default
in 12 years.

Jul 4, 2014

Argentina gets set for debt talks by calling U.S. judge biased

BUENOS AIRES (Reuters) – Argentina on Friday accused a U.S. judge of bias toward hedge funds that have sued the South American country for full repayment of defaulted bonds, cementing the tough stance it has taken ahead of debt talks set for New York next week.

A series of rulings by U.S. District Court Judge Thomas Griesa leave Argentina just three weeks to clinch a deal with the funds before falling into another default, which would heap financial stress on its already shrinking economy.

Jul 2, 2014

Argentina wants bond payment unfrozen if debt talks to go on

BUENOS AIRES, July 2 (Reuters) – Argentina will press a U.S.
judge to unfreeze a coupon payment to holders of the country’s
restructured debt as a condition of negotiating with ‘holdout’
creditors suing for full repayment, a government official said
on Wednesday.

Latin America’s No. 3 economy has been pushed to the brink
of a fresh default by a string of U.S. court decisions that have
forced it to negotiate with holdout investors who declined to
restructure their bonds after the country’s 2002 debt crisis.

Jun 27, 2014

Argentine debt battle could pressure world food prices higher

BUENOS AIRES, June 27 (Reuters) – Argentine farmers say they
will stockpile soybeans in the second half of the year if the
government is unable to cut a deal with debt investors to stave
off a new sovereign default, and the increased hoarding will
likely push world food prices higher.

Many producers are already holding soy back from the market
as a hedge against high inflation and say they will be even more
cautious as negotiations between the government and “holdout”
bond investors go down to the wire.

Jun 27, 2014

Argentine debt battle could reduce global soybean supply

BUENOS AIRES, June 27 (Reuters) – Argentine farmers say they
will stockpile soybeans in the second half of the year if the
government is unable to cut a deal with debt investors to stave
off a new sovereign default

Many producers are already holding soy back from the market
as a hedge against high inflation and say they will be even more
cautious as negotiations between the government and “holdout”
bond investors go down to the wire.

Jun 26, 2014

Argentina deposits debt payment, but U.S. court blocks payout

BUENOS AIRES, June 26 (Reuters) – Argentina has deposited
the next payment needed to avoid a default on its restructured
bonds, but a U.S. federal court decided on Thursday not to let
the payment go through

Both moves increased the stakes in a 12-year legal chess
game between Argentina and creditors who refused to accept the
downgraded terms offered by the country’s 2005 and 2010 debt
restructurings and are suing for full repayment.

Jun 23, 2014

Argentina seeks U.S. court stay to avoid new debt crisis

BUENOS AIRES, June 23 (Reuters) – Argentina has asked a U.S.
judge to issue a stay of his ruling against the country in its
case against “holdout” creditors as it seeks to start
negotiations aimed at avoiding a new default, according to court
papers filed on Monday.

Argentina is in a 12-year-old legal fight with investors who
declined to participate in debt restructurings after the country
failed to pay about $100 billion of debt in 2002. A new default
would put added strain on Latin America’s No. 3 economy as it
grapples with high inflation and already low investor sentiment.

Jun 20, 2014

Argentina’s Fernandez says willing to talk with all creditors

BUENOS AIRES (Reuters) – Argentine President Cristina Fernandez said on Friday her government would negotiate with all the country’s creditors, in a bid to avoid default that sparked a market rally on hopes that the country’s long debt-related court battles may soon end.

“We want to pay 100 percent of creditors,” she said in a speech celebrating Argentine Flag Day, sparking a sharp tightening of the country’s risk spreads.

Jun 19, 2014

Argentina says next bond payment ‘impossible’, default looms

BUENOS AIRES/NEW YORK, June 18 (Reuters) – Payment of bond
service due on June 30 in New York has been made “impossible” by
Wednesday’s lifting of a stay by a U.S. federal court,
Argentina’s economy ministry said on Wednesday, in a move that
appeared to move the country closer to default.

It said in a statement that Argentina “lamented” the lifting
of the stay by U.S. District Judge Thomas Griesa in Manhattan,
but that the government remained willing to pay holders of its
restructured debt. But the lifting of the stay would require
payment be made to holdout bond investors as well, something
Argentina says it cannot afford to do.