The Supreme Court of Justice of United States declined to consider the Argentinean case against “vulture funds” for the debt in default and the country shall now pay USD 1.3 billion to those bondholders.
Cristina Fernández´s government had warned that a decision of this kind would mean a risk of default.
The President insisted on the speculative characteristics of holdouts, as “they demand, under threat of dismissing the whole debt restructuring, that they get a differentiated payment regarding the 93% of those creditors who bet on Argentina (the bondholders who agreed with debt-restructuring proposals in 2005 and 2010)”. She stressed that the Government is “making a huge effort to pay debts undertaken by other governments” and that the solution with the holdouts generate “the prejudice to have availability of international financing at rates of 14% or 15%, which is extortionate and prohibitive”.
By the end of the Summit, the block of 133 countries plus China offered their support to the case against the vulture funds, which they defined as “speculative” and that “they represent a danger for future processes of debt restructuring, both for developing and developed countries”.
Lea la versión en español aquí.
