NEW YORK/BUENOS AIRES: Argentina’s economy minister told a mediator in the country’s dispute with holdout investors that the US court ruling against the country is “impossible” to fulfill and a stay is necessary in order to reach a solution for all creditors.
The country needs to make a deal with the holdouts who rejected debt restructurings after its 2002 default if it is to avoid a new default just as it struggles with recession and dwindling reserves. Kicillof spent four hours hashing through the case in New York on Monday with the special master, Daniel Pollack, who was appointed by US District Judge Thomas Griesa to find common ground in the years-long dispute.
The minister re-iterated that Argentina could not carry out Griesa’s ruling to immediately pay $1.33bn plus accrued interest to the group of holdouts led by Elliott Management Corp and Aurelius Capital Management, according to a ministry statement.
He also underscored, however, that Argentina was committed to continue negotiating to find a just solution for all creditors. For this purpose, Kicillof had made clear “it was necessary to reinstate the stay given that the case involved not just the litigators but could also be extended to all the creditors who did not join the swaps,” the ministry said.
More than 7 percent of Argentina’s investors did not accept the tough terms of its debt swaps in 2005 and 2010.
On Monday, he elbowed his way through a gaggle of at least 50 reporters after meeting with Pollack without commenting on the talks, before flying back the same night to Argentina.
Argentine officials will meet again with the mediator on Friday to try to resolve its legal battle with hedge funds suing for full repayment. Reuters
