Archive for the ‘Argentina’ Category

Argentina Expanding Russian Exports Thanks To Putin’s Spat With U.S., Europe

| August 12th, 2014 | No Comments »
EFE

The government of Argentina said Monday that it will expand exports to Russia by taking advantage of “the opportunity” created by Vladimir Putin’s ban on importing food and raw materials from the United States and the European Union in retaliation for sanctions imposed on Moscow by Washington and Brussels.

“Russia has a significant need for food products and the Argentine Republic can supply them,” cabinet chief Jorge Capitanich said during his regular press conference.

Argentina “will create the conditions so the private sector, with the backing of the government, can increase exports and satisfy the demand of the Russian market,” he said.

The relevant government ministries will establish “mechanisms to allow specific trade missions to take advantage of the opportunities created by this additional market opening,” the cabinet chief said.

The Russian government decreed last week a ban on imports of raw materials and ... Read More

Gobierno de Argentina demanda a EEUU ante la Corte Internacional

| August 8th, 2014 | No Comments »
El Nuevo Herald

BUENOS AIRES – La decisión de Argentina de recurrir ante la Corte Internacional de Justicia en la Haya las decisiones de los tribunales estadounidenses sobre la reestructuración de su deuda tensa sus relaciones bilaterales.

Argentina ha sido un aliado de Estados Unidos a lo largo de los años, pero con graves disensiones en momentos concretos, más frecuentes desde comienzos de este siglo.

Desde las presidencias de Juan Domingo Perón hasta las de Raúl Alfonsín, Washington negoció con vehemencia con Argentina el desmantelamiento de su programa nuclear, que consiguió finalmente.

La adhesión de Argentina al Movimiento de los Países No Alineados también fue objeto de roce entre ambos estados. En septiembre de 1991, el presidente Carlos Ménem anunció la retirada de su país de este grupo y, desde entonces, Argentina mantiene el estatuto de observador.

En el 2003, la guerra de Irak hizo resentirse las relaciones ... Read More

Argentina Sues U.S. in International Court of Justice Over Debt Dispute

| August 8th, 2014 | No Comments »
Wall Street Journal WSJ-01

BY KEN PARKS

Argentina has asked the International Court of Justice to hear a lawsuit it wants to bring against the U.S. in a high-stakes legal battle between the South American nation and some of its creditors over unpaid debts.

Argentina’s petition says that decisions by U.S. courts in the dispute have violated its sovereignty, The Hague-based tribunal said Thursday.

However, the U.S. would have to accept the International Court of Justice’s jurisdiction for a lawsuit to move forward, something that has happened in only 22 cases since the tribunal began working in 1946.

The Obama administration is unlikely to grant the request in the absence of a bi-lateral treaty that would require the U.S. to accept the court as a venue to hear disputes with Argentina, said Paz Zarate, an international law expert at Oxford Analytica.

“From the point of view of the U.S. government, the New York court system has dealt with a ... Read More

Argentina admite que la crisis por pago de deuda afecta al país y prepara medidas

| August 7th, 2014 | No Comments »
El Nuevo Herald

BUENOS AIRES – El ministro de Economía argentino, Axel Kicillof, admitió el miécoles que el conflicto abierto con fondos especulativos por el pago de deuda soberana en mora desde el 2001 afecta al país y anunció que preparan nuevas medidas económicas.

Mientras que la agencia Moody’s puso en negativo la perspectiva de la calificación de depósitos bancarios argentinos por el “debilitamiento del entorno” a consecuencia del “default (cese de pagos) de Argentina”, informó la calificadora.

“Esa es una batalla que por supuesto afecta a la Argentina pero tiene implicancias para el sistema financiero mundial muy complejas”, dijo Kicillof en Radio del Plata.

“No voy a negar dificultades. Las dificultades reales, como lo es el crecimiento del comercio internacional a un 2.1% el primer trimestre del año, cuando era del 4% en el 2013. Hay una desaceleración brutal. Donde haya un problema va a haber un gobierno ... Read More

Argentina: Unresolved debts

| August 7th, 2014 | No Comments »

BY BENEDICT MANDER, ELAINE MOORE, & JOHN PAUL RATHBONE

It was a sweltering evening in Manhattan last week when Axel Kicillof, Argentina’s economy minister, confronted the cameras to insist his country had not defaulted on its international bonds for the eighth time in its history, but instead had suffered a “freak occurrence”.

Only minutes earlier Standard & Poor’s, the rating agency, had declared Argentina in “selective default”. Ramming the point home, a court-appointed mediator then released a statement halfway through Mr Kiciloff’s lecture saying that negotiations in New York between the minister and a group of holdout creditors to stop the default had failed.

The semantic disagreement over “default” is just one of the confusions thrown up by what has been dubbed “the sovereign debt trial of the century”. Another is why Argentine bond prices have held up at about 80 cents to the dollar. Even allowing for the continuing market “melt-up”, that stands in sharp ... Read More

Menor demanda externa reduce crecimiento de América Latina

| August 5th, 2014 | No Comments »
El Nuevo Herald

AFP

SANTIAGO – La menor demanda externa de materias primas por parte de los socios de América Latina y el Caribe, principalmente China, llevó a Cepal a reducir su estimación del crecimiento de la región de 2.7% a 2.2% en el 2014.

A la menor demanda externa se suma “un bajo dinamismo de la demanda interna, insuficiente inversión y un limitado espacio para la implementación de políticas que impulsen la reactivación”, sostuvo la Comisión Económica para América Latina y el Caribe (Cepal) en un informe económico presentado este lunes.

El menor crecimiento de China es “el principal riesgo” en lo que queda de año para los países de la región exportadores de materias primas.

En tanto, el crecimiento de Europa y Japón, otros importantes socios comerciales de Latinoamérica, caerá de 0.5% a 0.2% y de 1.7% a 1.4% respectivamente, lo que también significará una menor demanda de las ... Read More

What the heck is going on with Argentina?

| August 5th, 2014 | No Comments »
From CNN

BY MELVIN BACKMAN

Argentina, South America’s second-largest economy, has defaulted for the third time in 25 years. It can’t pay its bills — or, at least, it is refusing to pay its bills.

Here are the answers to some questions you might have about the whole mess:

1. How did things get so bad? Back in 2001, Argentina’s economy was in much worse shape and it defaulted on $100 billion in debt.

Over the next few years, Argentina convinced more than 90% of its creditors — the “exchange” group — to accept new bonds worth a fraction of the old ones. But a small group of so-called “holdouts” didn’t take the deal and sued for full payment.

Argentina stopped giving money to the holdouts, but it did continue to pay back the exchange group.

Fast-forward to 2012, and a federal judge out of Manhattan named Thomas Griesa ruled that Argentina has to pay the holdouts if it ... Read More

Argentina Loses Bid to Oust Debt Dispute Mediator

| August 5th, 2014 | No Comments »
Article originally appeared in the Associated Press

BEN FOX

A U.S. judge on Monday turned back an effort by Argentina’s government to remove the court-appointed mediator in the dispute with creditors that triggered a default by the country last week.

U.S. District Judge Thomas P. Griesa dismissed Argentine complaints that mediator Daniel Pollack has not been an impartial mediator in their battle with investors who refused to accept a debt restructuring after the last time the country defaulted, in 2001.

Referring to Pollock by his legal title of special master, Griesa praised his work in handling the dispute, saying he has acted with “great skill” and been even-handed with all parties.

“It is hard to imagine a worse move that the court could make than to remove the special master,” Griesa said. “It would be a gross injustice and would drastically interfere with the process which has been going on and must continue.”

Jonathan Blackman, an attorney for Argentina, criticized Pollack and ... Read More

Argentine Leader Defies Wall Street for Main Street

| August 1st, 2014 | No Comments »
Wall Street Journal WSJ-01

By JUAN FORERO, KEN PARKS and SHANE ROMIG

BUENOS AIRES—Argentines awoke Thursday to find their country was once again a financial pariah after President Cristina Kirchner, a populist known for picking political fights, stared down Wall Street hedge funds and pushed her country into its second default in 13 years.

Her refusal to settle with bondholders owed $1.6 billion could prove politically expedient in the short term: It distracts from Argentina’s slowly crumbling economy and shores up her support among many working-class Argentines who form the base of her Peronist movement, economists and analysts say.

But like many of Mrs. Kirchner’s combative moves since she became president in 2007, this one is fraught with risk, potentially deepening an economic recession, weakening a fragile peso and adding to a rate of inflation that at more than 40% is among the world’s highest.

“From the point of view of the real economy, I don’t see any benefits,” said Martin Redrado, ... Read More

Argentina in denial over debt dispute

| August 1st, 2014 | No Comments »
BBC

By Robert Plummer

Right from the start, the Argentine government’s attitude to its debt dispute with US hedge funds made it all but inevitable that the country would fail to reach a compromise.

“We’re not going to default, they’ll have to invent a new term to define what’s happening,” said President Cristina Fernandez de Kirchner last week, deep in denial, as the deadline loomed for the country to meet its obligation to the so-called “vulture funds”.

Thanks to a US court decision, Argentina is required to pay $1.3bn (£766m) to investors who bought its bonds at a big discount after its economic meltdown and previous default in 2001-02.

It failed to do so by 30 June and a 30-day grace period has now expired.

But the government resisted that course of action, because it feared that it could lead to the unravelling of other debt deals that it struck with ... Read More

Argentina slides into default as debt talks fail

| July 31st, 2014 | No Comments »
Article originally appeared in the Associated Press

By CLAUDIA TORRENS

NEW YORK (AP) — The collapse of talks with U.S. creditors sent Argentina into its second debt default in 13 years and raised questions about what comes next for financial markets and the South American nation’s staggering economy.

A midnight Wednesday deadline to reach a deal with holdout bondholders came and went with Argentine Economy Minister Axel Kicillof holding firm to his government’s position that it could not accept a deal with U.S. hedge fund creditors it dismisses as “vultures.” Kicillof said the funds refused a compromise offer in talks that ended several hours earlier, although he gave no details of that proposal.

“We’re not going to sign an agreement that jeopardizes the future of all Argentines,” Kicillof said after he emerged from the meeting with creditors and a mediator in New York City. “Argentines can remain calm because tomorrow will just be another day ... Read More

Argentina hours away from bond default

| July 30th, 2014 | No Comments »
BBC

By Katy Watson

Argentina’s economy minister is expected to return to the negotiating table on Wednesday in a last-ditch attempt to prevent the country defaulting on its bonds.

Axel Kicillof’s talks with “hold-out” investors ended late on Tuesday night in New York without agreement.

They are demanding a full pay-out of $1.3bn (£766m) on the bonds they hold.

A US judge has ruled that the “hold-outs” must be paid by Wednesday night if no deal is agreed.

But thousands of miles away in Buenos Aires, many are sceptical that there can be any agreement.

The government’s rhetoric has been clear.

The “hold-outs” are US hedge funds that bought debt on the cheap during Argentina’s darkest hours and never agreed to restructuring.

President Cristina Fernandez de Kirchner calls them vultures, accusing them of taking advantage of Argentina’s debt problems to make a big profit.

What makes the problem worse is that if the “hold-outs” get their ... Read More

Argentina in last-ditch effort to avert default

| July 29th, 2014 | No Comments »
Yahoo News-01

By ALMUDENA CALATRAVA and LUIS ANDRES HENAO

BUENOS AIRES, Argentina (AP) — Argentina’s government said Monday it will make another effort to reach a deal with US. creditors ahead of a looming deadline that risks sending the country into its second default in 13 years.

Cabinet Chief Jorge Capitanich said an Argentine delegation would be in New York to meet with a court-appointed mediator Tuesday, just a day ahead of the deadline.

“Argentina’s position is to reach a dialogue that establishes fair, legal and sustainable conditions for negotiation with 100 percent of the bondholders,” Capitanich said at a news conference at the presidential palace.

But the mediator, Daniel A. Pollack, said in a statement that while the Argentines would meet him, they had not yet accepted his recommendation of face-to-face talks with the plaintiffs in the dispute, led by New York billionaire Paul Singer’s NML Capital Ltd.

... Read More

IMF sees ‘substantial costs’ of an Argentina default

| July 25th, 2014 | No Comments »
From AFP

The IMF’s chief economist warned Thursday that a default by Argentina in its battle with holders of its defaulted debt may hurt its economy and the global financial system.

“If it goes into default and doesn’t pay the holdouts, there might be substantial costs, being basically unable to access markets for some time,” said Olivier Blanchard, head of the International Monetary Fund’s team of economists.

Blanchard, speaking at a news conference on the latest IMF growth forecasts for the global economy, also emphasized that “there’s a cost to the world in the sense that we need resolution systems which work well when countries are in trouble.”

Under a US court order, Argentina has until next Wednesday to either pay certain hedge funds demanding full payment on defaulted bonds or risk being declared in default.

Blanchard said the Argentina case means “there’s much more uncertainty as to how we’ll be able to restructure ... Read More

Argentina: se aplaza reunión entre gobierno y “fondos buitre”

| July 23rd, 2014 | No Comments »
BBC

La reunión programada para este miércoles entre el gobierno de Argentina y los representantes de los llamados “fondos buitres” ha sido aplazada.

Ambas partes debían encontrarse en EE.UU., en la oficina del mediador judicial Daniel Pollack.

No obstante, el abogado hizo saber este miércoles que la reunión no podría realizarse y que tendría que ser aplazada “debido a que los argentinos dijeron que no podrían llegar a tiempo” a Nueva York.

El Ejecutivo argentino litiga contra un grupo de inversionistas que reclaman una suma millonaria por los títulos de deuda soberana impagados cuando el país cesó pagos por unos US$100.000 millones.

Más del 90% de los tenedores de bonos se han acogido a las quitas ofrecidas por el gobierno, pero los fondos con los que ahora litiga el gobierno no han aceptado rebajas.

De hecho, el gobierno los califica de “fondos buitre” porque considera que pagaron precios muy rebajados por sus títulos en lo peor de ... Read More

U.S. Judge Denies Argentina More Time to Negotiate With Creditors

| July 23rd, 2014 | No Comments »
Wall Street Journal WSJ-01

BY NICOLE HONG

A U.S. District Judge in a hearing Tuesday didn’t grant Argentina’s request for more time to negotiate with holdout creditors, directing both parties and their lawyers to meet with a court-appointed mediator to reach a settlement.

On Monday, Argentina asked Judge Thomas Griesa to allow it to make the interest payment due June 30 on its restructured bonds, which would give the country more time to negotiate a settlement with its holdouts.

Judge Griesa has ruled that Argentina isn’t allowed to pay its restructured bondholders until it reaches a settlement with a group of holdout creditors who have refused the country’s debt restructuring offers since its 2001 default and are owed about $1.6 billion. If Argentina is unable to reach an agreement with the holdouts by July 30, it will suffer its second default in 13 years.

At a hearing in federal court in Manhattan, Judge Griesa told both sides to ... Read More

China’s Xi eyes increased investment in Cuba

| July 22nd, 2014 | No Comments »
Yahoo News-01

Havana (AFP) – Chinese President Xi Jinping is visiting Cuba with hopes of expanding political and economic ties in the fellow communist nation.

The tour of the Americas’ only one-party communist nation is the last leg of a weeklong trip in the region that has already taken Xi to Brazil, Argentina and Venezuela, as he reaches out to resource-rich countries often shunned by the United States and Europe.

The Chinese leader arrived in Havana late Monday from Caracas for the two-day official visit.

Xi aims to make his country — already Cuba’s second-largest trading partner after Venezuela and its primary source of credit — a major investor on the Caribbean island.

Coinciding with his trip, about 50 Chinese entrepreneurs traveled to Havana to explore business opportunities, attracted by foreign investment incentives and the future Mariel free trade zone outside the capital.

“We want Chinese businessmen to invest in Cuba and partner with Cuban companies,” said ... Read More

Argentina Countdown to July 30 Deadline: Default or Boom

| July 21st, 2014 | No Comments »
Bloomberg

By Camila Russo

Argentina is set to default in less than two weeks unless it reaches a deal with holders of defaulted bonds or U.S. courts grant a delay to allow the nation to continue servicing restructured bonds.

U.S. Judge Thomas Griesa blocked the country’s attempt to make a June 30 bond payment, saying it must also comply with an order to pay $1.5 billion to hedge funds and other holders of defaulted bonds that sued for full repayment. As the 30-day grace period winds down, here are three possible outcomes:

1) Argentina and Holdout Creditors Reach a Deal by July 30

A settlement with creditors holding untendered securities from the nation’s $95 billion default in 2001, including billionaire Paul Singer’s NML Capital Ltd. and Aurelius Capital Management LP, would likely be the best scenario for investors.

“Most importantly it would allow Argentina to regain access to international credit markets,” said Mauro Roca, a senior Latin America ... Read More

Argentina nears cliff in risky debt game

| July 21st, 2014 | No Comments »
Financial Times

By Benedict Mander

In “Rebel Without a Cause”, the anti-hero played by James Dean is challenged to a lethal game of chicken in which two cars must race towards a cliff. The loser is the driver who jumps out first. Investors in Argentine bonds must feel as if they are in a re-run of the 1955 film.

“There is no better analogy” for the showdown between Argentina and a group of New York hedge funds seeking repayment of bonds still in default since the country’s 2001 debt crisis, says Marco Schnabl, an Argentine lawyer at Skadden, Arps, Slate, Meagher & Flom. “Who is prepared to get closest to the brink?”

Despite a looming July 30 deadline for Argentina to make interest payments on restructured bonds, which it has been prevented from doing by a New York judge unless it also pays its “holdout” creditors in full, Argentine bond prices have rallied sharply in anticipation ... Read More

Xi heads to Venezuela after inking trade deals with Argentina

| July 21st, 2014 | No Comments »
Global Post

China’s President Xi Jinping departed Argentina Sunday for Venezuela, the next-to-last stop of a Latin American tour aimed at bolstering trade with the region.

The Chinese leader’s charm offensive seeks to secure new bilateral trade deals — particularly for coveted raw materials.

Xi hopes to further develop his country’s strategic relationship with Venezuela, just as Caracas’ ties with the United States — the region’s traditional political and economic powerhouse — are arguably at their lowest point ever.

The countries, which have not had ambassadors in each other’s capitals since 2010, had poor relations during the leadership of late president Hugo Chavez and ties have remained strained under his successor, Nicolas Maduro.

- Warming ties with Caracas -

By contrast, relations have been warming between China and Venezuela where bilateral trade has been steadily rising, exceeding $20 billion in 2012. Beijing now is also the second largest buyer of Venezuelan oil.

Xi’s visit to Caracas is sandwiched ... Read More

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