BUENOS AIRES Aug 1 Argentina's economy ministry
said on Friday it had asked the national securities watchdog to
investigate whether litigation in the United States against the
nation by holdouts was merely the "facade of speculative
manoeuvre in favour of vulture funds."
The ministry said the watchdog should investigate whether
the holdouts litigated simply to earn profit on defaulted bonds
they bought on the cheap as well as on credit default swaps
(CDS), derivatives used to insure against default.
Regarding the decision earlier on Friday by the
International Swaps and Derivatives Association (ISDA) to call
Argentina's missed June interest payment a "credit event",
triggering payment on CDS, the ministry said it "favoured some
privates at the expense of others."
The Argentine securities watchdog will ask its U.S.
counterpart for "precise information about the transactions of
these (CDS) to investigate if the vulture funds earned a huge
benefit from not reaching an agreement, either directly or via
(Reporting By Sarah Marsh and Eliana Razsweski; Editing by