Kirchner announced a decree allowing the holders of shares belonging to the swap the past few years to bring them under the jurisdiction of Buenos Aires. In this way would not be worth the prohibition of the American court to block the interest payments, to give priority to hedge funds that have not accepted the exchange ratios
MILAN – The Argentina Tango is ready to repay the bonds in the financial center of Buenos Aires, bypassing the blockage by of American justice. In a televised speech the president, Cristina Kirchner, announced that a bill was sent to Congress to change the jurisdiction of the bond and allow Argentina to pay the holders of securities who have accepted the exchange ratios of 2005 and 2010.
“In order to safeguard the payment to the creditors who accepted the debt restructurings in 2005 and 2010, a subsidiary of the publicly owned bank Banco Nacion has been designated to replace Bank of New York Mellon as fiduciary agent, without prejudice to what decide the bondholders, is a measure based on volunteering. ” In essence, Kirchner says, “if you ask bondholders, individually or collectively, a change of legislation and jurisdiction of their bonds, Economy Minister is authorized to apply the swap for new bonds under the local jurisdiction.”
The final repayment of debt to the holders of Argentine Tango bond has been blocked by a U.S. judge until Argentina has paid $ 1.6 billion to ‘hedge fund’, hedge funds, which do not agreed swaps, leading the country in partial default. A decision that would set a precedent, as judged by Baires antechamber of failure, since all those who hold bond
and that did not accept the exchange ratios would rush to seek their own interests. On the other hand, in this way the interests provided for those who have accepted the exchange ratios have remained frozen: technically Argentina has the money, but they are still in an account at Bank of New York Mellon, and from there moved . For this reason, the deadline has passed and the period of relative tolerance, there has been talk of technical default of the country, which in fact has not honored its commitment to its creditors.
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