UN reveals roadmap for sovereign debt crises

Sovereign debt crises have tested governments from Iceland to Argentina since the global financial meltdown of 2008.

Argentina asks US appeals court to reverse Griesa's contempt ruling

Argentina asked the federal appeals court in New York to reverse Judge Thomas Griesa's ruling which said Argentina was in civil contempt of his orders for working on a plan to shift control over payments of its restructured debt to Buenos Aires, according to a court filing yesterday and reported by international news agencies today.

US District Judge Thomas P. Griesa in September cited Republic officials for wrongly trying to replace Bank of New York Mellon with Nacion Fideicomisos SA as indenture trustee.

Αλλαγές στις Συμβάσεις των Κρατικών Ομολόγων, Προτείνει το ΔΝΤ

Το Διεθνές Νομισματικό Ταμείο τάχθηκε υπέρ μιας σταδιακής ανταλλαγής κυβερνητικών ομολόγων σε όλο τον κόσμο με νέα συμβόλαια ώστε να αντιμετωπιστεί ο κίνδυνος οι πιστωτές που διακρατούν χρεοκοπημένα ομόλογα να διακόψουν την προσπάθεια αναδιάρθρωσης του χρέους μιας χώρας....

Το ΔΝΤ, μαζί με ορισμένους επενδυτές και οικονομολόγους, έχουν προειδοποιήσει ότι η απόφαση αμερικανικού δικαστηρίου κατά της Αργεντινής σε μια μακρά μάχη με τους πιστωτές που αρνούνται να ενταχθούν σε μια συμφωνία αναδιάρθρωσης θα μπορούσε να θέσει σε κίνδυνο άλλες διαδικασίες στο κρατικό χρέος καθώς δίνει σε μια μικρή μειοψηφία υπέρμετρη δύναμη.

'Griesa can't impose non-monetary fines’. [The RUFO (Rights Upon Future Offers) clause]

The Herald talks to UBA lawyer specialized in international law Stella Maris Biocca

US District Judge Thomas Griesa declared Argentina in contempt of court this week due to the government’s decision to change trustees and try to pay bondholders in Buenos Aires. But many questions remain over what kind of sanctions Griesa could issue against the country in order to give his contempt ruling some teeth.
Buenos Aires University (UBA) lawyer specialized in international law Stella Maris Biocca says Griesa’s contempt order was “inappropriate” and says the judge could issue monetary fines against the country soon.

US judge Thomas Griesa declares Argentina in contempt of court, monetary fine decision postponed

New York district judge Thomas Griesa has declared Argentina in contempt of court, due to the nation's actions in attempting to change debt jurisdictions as a result of the ongoing judicial conflict with holdout investors presided over by the US magistrate.

The justice deferred the imposition of financial penalties worth up to 50,000 dollars a day for a later date.

‘It is the first time an international institution will investigate vulture funds’ (Argentinian FM)

Foreign Minister Héctor Timerman praised the resolution passed at the United Nations Human Rights Council condemning US hedge funds that took Argentina to court. The official pointed out that it is the first time the so called vulture funds will be subjected to an investigation by an international institution.

“Our contribution to future generations is that this will not happen again,” Timerman said in an interview with Página/12 newspaper. “We know they (vulture funds) won’t stop until we stop them,” the minister said.

Cristina Fernández de Kirchner denounces vultures' 'economic terrorism' to UN General Assembly

President Cristina Fernández de Kirchner today addressed the United Nations General Assembly, accusing holdout investors of committing "economic terrorism" and reiterating her wish for a multi-lateral framework to regulate sovereign debt.

"The vulture funds threaten and attack with actions against our country's economy, causing rumours, mistruths and outright lies," she told the organisation.

"It is almost a type of economic and financial terrorism."

UN General Assembly Votes to Negotiate Sovereign Debt Restructuring. (The United States voted against the resolution)

Reacting to Argentina's battle about its past debts with what it calls predatory hedge funds, the UN General Assembly on Tuesday approved a resolution by 124 votes to 11, with 41 abstaining, which "decides to elaborate and adopt through a process of intergovernmental negotiations, as a matter of priority during its sixty-ninth session, a multilateral legal framework for sovereign debt restructuring processes."

The United States voted against the resolution, sponsored by the Group of 77 and China, saying that it would introduce uncertainty into financial markets.

"Argentina is under speculative attack" (Cabinet Chief Jorge Capitanich)

After the US dollar informal rate broke a new record yesterday, advancing 22 cents to 14.20 pesos, Cabinet Chief Jorge Capitanich accused vulture funds of carrying out “speculative attacks against the (peso) currency” to “systematically erode the government’s credibility and trust.”
The chief of ministers pointed out that the vulture funds act through “powerful international lobbies” and local “opposition leaders, unions and concentrated media groups” to carry out “insidious attacks” against President Kirchner and her government.

US Judge Griesa schedules new hearing for today after holdouts claim Argentina ignored court orders

US District Judge Thomas Griesa will lead a new hearing today on Argentina's debt case at 4 pm (Argentine time) after a holdout group claimed Argentina is ignoring his prior orders.

In a letter to the judge filed late yesterday, NML Capital Ltd said the measures announced by President Cristina Fernandez on Tuesday were a "grave affront" on Griesa's ruling.

Buenos Aires moves to pay bondholders in Argentina (Cristina Fernández de Kirchner)

BUENOS AIRES: Buenos Aires on Tuesday (Aug 20) moved to pay bondholders domestically after a US bank left it unable to do so, President Cristina Kirchner said.
"To protect the payments to bondholders who took part in the 2005 and 2010 debt swaps, we are designating the (state) Banco Nacion Trust as a replacement for Bank of New York Mellon, however the bondholders decide (to take payment), voluntarily," Kirchner said in a televised address.
In July, US Judge Thomas Griesa ordered a freeze on some Argentine payments until Buenos Aires simultaneously pays off the hedge funds which sued the country to demand payment on their bonds.

«Όρνια» στον ουρανό του Μπουένος Άιρες (DW)

Αυξάνονται οι πιέσεις στην Αργεντινή μετά το «ναυάγιο» των διαπραγματεύσεων με πιστωτές, που δεν συμμετείχαν σε προηγούμενα κουρέματα του χρέους. Τη λύση θα μπορούσαν να δώσουν οι τράπεζες...

Η «επόμενη μέρα» δεν επιφυλάσσει ορατές αλλαγές: η ομίχλη απλώνεται για μία ακόμη φορά στις όχθες του Ρίο ντε Λα Πλάτα, πολύς κόσμος από τα περίχωρα του Μπουένος Άιρες συνωστίζεται σε τρένα και λεωφορεία, εισρέοντας στο κέντρο της πόλης, τα μηχανήματα ανάληψης δουλεύουν κανονικά. Τα μέσα ενημέρωσης αφιερώνουν στον θάνατο του Χούλιο Ουμπέρτο Γκροντόνα, προέδρου της ομοσπονδίας ποδοσφαίρου, τον ίδιο ή και περισσότερο τηλεοπτικό χρόνο, από το «ναυάγιο» των διαπραγματεύσεων με τους απρόθυμους πιστωτές.

Argentina blames US, denies default claims. (“If there’s a judge who’s an agent of these speculative funds, if the mediator is....")

Argentina blames the United States for the legal battle that forced it to miss a debt payment and, despite ratings agencies’ declarations to the contrary, denied being in default.

Ratings agency Fitch declared Argentina in “restrictive default” July 31 after 11th-hour talks failed to resolve the country’s dispute with two U.S. hedge funds that refuse to accept a write-down on their Argentine bonds.

Fitch’s label echoed the “selective default” declared Wednesday by Standard & Poor’s. Both terms indicate that Argentina has defaulted on one or more of its financial commitments but continues to meet others.

Argentina set for turmoil as debt talks fail (Talks in New York aimed at averting second default in 13 years)

Talks in New York aimed at averting Argentina's second default in 13 years have ended with bitter recriminations as Buenos Aires said it could not accept a deal with US hedge fund creditors it dismisses as "vultures."

Court-appointed mediator Daniel Pollack said the failure triggered an imminent default that, among other things, would hurt the Argentine economy as well as bondholders who were not part of the dispute.

"The full consequences of default are not predictable, but they are certainly not positive," Pollack said.

Αργεντινή: Εκβιασμός η απόφαση για τα funds, δεν θα χρεοκοπήσουμε

Τα hedge funds μπορούν να πάρουν πληροφορίες για περιουσιακά στοιχεία του αργεντινικού δημοσίου σε αμερικανικές τράπεζες...
 
Αρνείται η Αργεντινή να «υποκύψει στον εκβιασμό», όπως τον χαρακτηρίζει η πρόεδρός της Κριστίνα Φερνάντες ντε Κίρσνερ, για πλήρη αποπληρωμή σε δύο κερδοσκοπικά fund μετά την άρνηση του Ανώτατου Δικαστηρίου των ΗΠΑ να εξετάσει έφεση επί της υπόθεσης.

Βουλή: 29 βουλευτές της ΝΔ ζητούν διευκολύνσεις για τα «κόκκινα» δάνεια. -Eρώτηση προς τους κ.κ. Στουρνάρα και Χατζηδάκη

Ερώτηση για τη δυνατότητα επιμήκυνσης του χρόνου αποπληρωμής των στεγαστικών δανείων και εξαγοράς τους από τους οφειλέτες, στο ίδιο ποσοστό (επί της αρχικής αξίας) με εκείνο της πώλησης των «κόκκινων» δανείων σε ξένα funds, κατέθεσαν σήμερα 29 βουλευτές της Νέας Δημοκρατίας, με επικεφαλής τον Ιορδάνη Τζαμτζή. 

 
Σημειώνοντας πως αντίστοιχα μέτρα έχουν ληφθεί και στην Πορτογαλία, οι βουλευτές προτείνουν στους υπουργούς Οικονομικών και Ανάπτυξης, κ.κ. Στουρνάρα και Χατζηδάκη, να δοθούν τρεις δυνατότητες στους δανειολήπτες των «κόκκινων» δανείων: