Countdown To Default!

[French jurist]

Presidenta Cristina: "Impedir que alguien pague no es default"
www.losandes.com.ar/article/cristina-nego-el-default-y-pidio-unidad

Economy minister Kicillof: "there’s no default, we’ve paid"
http://www.buenosair...ult-we’ve-paid’

Can someone explain why the Argentine government claims that Argentina is not in default?

They have themselves very precisely defined what constitutes default in the prospectus for debt restructuring 2005 (under Néstor) and 2010 (under Cristina).

2005: "Notwithstanding the foregoing, Argentina's obligations to make payments of principal and interest on the New Securities shall not have been satisfied until such payments are received by registered holders of the New Securities."

http://www.sec.gov/A...04567e424b5.htm p-67
http://www.mecon.gov..._supplement.pdf S-67

"Notwithstanding the foregoing, Argentina’s obligations to make payments of principal, interest or other amounts on the New Securities shall not have been satisfied until such payments are received by the common depositary (or its nominee), as registered holder of the New Securities."

http://www.mecon.gov...(version_ingles)_30042010.pdf

According to both these (almost identical) Argentine definitions Argentina is in default.

Is it caused by selective amnesia? or saving face domestically?

Little rabbit has a selective reading & should read what's before:

"In the case of U.S. dollar-denominated New Securities, except U.S. dollar-denominated New Securities governed by Argentine law, the U.S.-European trustee will make payments to DTC or its nominee, as the registered owner of such New Securities, which will receive the funds for distribution to the holders of such New Securities;

In the case of euro-denominated New Securities, the U.S.-European trustee will make payments to the common depositary for Euroclear or Clearstream, Luxembourg, or its nominee, as the registered owner of such New Securities, which will receive the funds for distribution to the holders of such new securities;​

In the case of peso-denominated New Securities (including Quasi-pars) and U.S. dollar-denominated New Securities governed by Argentine law, payments will be made to CRYL, which will receive the funds for distribution to the holders of such New Securities."

So I guess the problem is along the lines that BNY Mellon has to respect contradictory obligations, because of the mess created (and Griesa still didn't rule about the Sovereignty problem).

Bisous

 

[Don Alberto]

Little Rabbit has also read several comments by specialists in sovereign debt, and they all come to the same conslusion: Argentina is in default, whether frenchie likes it or not.

 

[Somewhereinba]

 

[dennisr]

Little Rabbit has also read several comments by specialists in sovereign debt, and they all come to the same conslusion: Argentina is in default, whether frenchie likes it or not.

But, but but...Argentina fulfilled their agreed obligation according to NEW YORK LAW.

 

[scotttswan]

http://www.youtube.com/watch?v=DDjpOrlfh0Y

 

[Don Alberto]

But, but but...Argentina fulfilled their agreed obligation according to NEW YORK LAW.

Argentina did not.

Argentina must not only fulfill all the conditions in their own restructuring prospects, but also Griesa's ruling, and United States Court of Appeals ruling, NML Capital, Ltd. v. Republic of Argentina:

"For the reasons stated, the judgments of the district court (1) granting summary judgment to plaintiffs on their claims for breach of the Equal Treatment Provision and (2) ordering Argentina to make “Ratable Payments” to plaintiffs concurrent with or in advance of its payments to holders of the 2005 and 2010 restructured debt are affirmed."

http://www.shearman....ision110512.pdf

Argentina did not pay and did not try to pay the holdouts.

Can we once and for all bury this and perhaps trust nasdaq???

Argentina Put Into Selective Default by Standard & Poor's
http://www.nasdaq.co...-20140730-01652

Addition:

Fitch rating agency has also downgraded Argentina's sovereign debt grade to the category of “restrictive default”, as it considered the country failed to make payment of its Discount bonds on July 30.

The agency downgraded Argentina from “CC” to “RD” and also lowered Discount bonds rating from “CCC” to “D”, arguing Argentina “has not been able to attend payment of Discount bonds and according to Fitch criteria this constitutes a non-completion.”

 

[Don Alberto]

Presidenta Cristina: "Impedir que alguien pague no es default"

Economy minister Kicillof: "there’s no default, we’ve paid"

Watch how it's done in https://www.youtube....w7nD9C4&t=2m07s

 

[Matiasba]

Argentina did not.

Argentina must not only fulfill all the conditions in their own restructuring prospects, but also Griesa's ruling, and United States Court of Appeals ruling, NML Capital, Ltd. v. Republic of Argentina:

"For the reasons stated, the judgments of the district court (1) granting summary judgment to plaintiffs on their claims for breach of the Equal Treatment Provision and (2) ordering Argentina to make “Ratable Payments” to plaintiffs concurrent with or in advance of its payments to holders of the 2005 and 2010 restructured debt are affirmed."

http://www.shearman....ision110512.pdf

Argentina did not pay and did not try to pay the holdouts.

Can we once and for all bury this and perhaps trust nasdaq???

Argentina Put Into Selective Default by Standard & Poor's
http://www.nasdaq.co...-20140730-01652

Addition:

Fitch rating agency has also downgraded Argentina's sovereign debt grade to the category of “restrictive default”, as it considered the country failed to make payment of its Discount bonds on July 30.

The agency downgraded Argentina from “CC” to “RD” and also lowered Discount bonds rating from “CCC” to “D”, arguing Argentina “has not been able to attend payment of Discount bonds and according to Fitch criteria this constitutes a non-completion.”

S&P? do you know where they put Argentina in August 2001?

 

[ghost]

Not surprisingly, CDS have been triggered

http://www.bloomberg...waps-world.html

The pigs make it on both ends. But most pigs end in the slaughter house. Have faith.

 

[Gringoboy]

499 more days to go...