CORRECTED-UPDATE 1-Argentina slams U.S. Judge Griesa for "imperialist" attitude

Fri Aug 22, 2014 8:29am EDT

(Corrects percentage of currency fall in 7th paragraph)

BUENOS AIRES Aug 22 (Reuters) - Argentina on Friday accused the U.S. judge who called the country's new debt restructuring plan illegal of making "imperialist" comments against the South American nation.

Latin America's No. 3 economy tipped into its second default in 12 years in July after U.S. District Judge Thomas Griesa blocked payments to holders of debt issued under U.S. law that was restructured following its record default in 2002.

Griesa said measures announced by Argentina's president this week to make debt payments locally and push bondholders to bring their debt under Argentine law violated past court rulings, though he stopped short of holding the country in contempt.

Argentine Cabinet Chief Jorge Capitanich said U.S. District Judge Thomas Griesa's choice of words were "unfortunate, incorrect and even, I would say, imperialist expressions".

In a statement issued late on Thursday, Argentina's economy ministry said the veteran judge's remarks showed a "complete ignorance of the functioning of democratic institutions."

Analysts say that a deal between Argentina and the U.S. investment funds who rejected large writedowns in the wake of the 2002 default is now unlikely before next year's election, in which President Cristina Fernandez cannot run.

The country's peso currency has shed 5.2 percent since the tough-talking Fernandez unveiled the draft bill late on Tuesday, its fastest fall since January, plumbing a new record low of 14 per dollar on the black market on Thursday. (Reporting by Jorge Otaola and Richard Lough)

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Comments (2)
GermanHoldout wrote:
NOW THIS UNJUST WAR ALSO AGAINST THE US JUSTICE…

Judge Griesa is 100% right!

In the bond contracts “Pari Passu” is clear defined.
ALSO, IN THE BOND CONTRACTS ARGENTINA HAS EXPLICITLY WAIVED ITS SOVEREIGN IMMUNITY!!!

Argentina is paying the “Exchange bondholders” according to the
agreement reached.

BUT, as in the bond contracts pari passu defined and Judge Griesa says, ARGENTINA MUST ALSO PAY THE “HOLDOUT BONDHOLDERS” ACCORDING TO THE AGREEMENT, THE HOLDOUTS HAVE WITH ARGENTINA!

President Kirchner should end this HORROR WAR against innocent Holdouts and the US Justice, and respect the bond contracts with the holdouts!

President Obama should help and talk to President Kirchner to end Argentina’s Horror-Default.

IN PRACTICE, FOLLOWING COULD BE THE SOLUTION TO FINISH ARGENTINA’S SINCE 2002 ONGOING NIGHTMARE DEFAULT WITH THE HOLDOUTS.

ARGENTINA SHOULD GIVE A SIGN, A PROMISE TO JUDGE GRIESA / MEDIATOR POLLACK AND THE HOLDOUTS, THAT IT WILL NEGOTIATE IN GOOD FAITH AND IT WILL FULFILL THE COURT ORDER (EXTENDED TO ALL HOLDOUTS) AND REPAY THE DEBT TO THE HOLDOUTS, AFTER THE RUFO CLAUSE EXPIRES IN DECEMBER 2014.

THEN THE HOLDOUTS WOULD SURELY ASK JUDGE GRIESA TO REINSTALL THE “STAY” UNTIL JANUARY 1, 2015.

Argentina enters into good-faith negotiations with the holdout
creditors – ALL OF THEM –via the offices of NML Capital/Aurelius. A
firm deadline should be set to reach an agreement, say January 2,
2015, two days after the expiration date of the Rights upon Future
Offers clause.

HOW COULD BE THE CONDITIONS FOR THE REPAYMENT?

Argentina owes to today about 230% to the Holdouts (since 2002
Argentina had not repaid a cent to the holdouts)

- at the latest, on 02/01/2015 (end of RUFO clause) Argentina would repay in CASH 100% of the nominal value of the defaulted bonds, which became due before 2015.

- For the accrued interest between 2002-2015 (until now about 130%), Argentina would emit new bonds with a maturity of 5-7 years.

Aug 22, 2014 6:03pm EDT  --  Report as abuse
GermanHoldout wrote:
“Contempt of the court” could presumably also mean in worst case an international arrest order of President Cristina Kirchner and Economy Minister Kicillof (?)

Wikipedia says:

http://en.wikipedia.org/wiki/Contempt_of_court

Contempt of court, often referred to simply as “contempt,” is the offense of being disobedient to or disrespectful towards a court of law and its officers in the form of behavior that opposes or defies authority, justice, and dignity of the court

THE JUDGE MAY IMPOSE FINES AND/OR JAIL TIME UPON ANY PERSON COMMITTING CONTEMPT OF COURT.

Aug 23, 2014 10:51am EDT  --  Report as abuse
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