Argentinian President and hedge fund ‘vultures’ will be forced to thrash out deal
Jim Armitage is the City editor of The Independent and London Evening Standard group of newspapers. He has been a reporter and editor for more than 20 years and was recently shortlisted for the Press Gazette financial journalist of the year and The Society of Editors financial journalist of the year awards. He contributes news, investigative reports and comment to the Independent titles plus a daily column in the Evening Standard.
Tuesday 17 June 2014
Outlook Time is running out for Cristina Fernandez de Kirchner. While the Argentinian President has been talking tough about defying the hedge fund “vultures” carrying out “extortion” on her country, in reality her options are rapidly disappearing.
The US Supreme Court’s ruling that she must pay in full the hedge funds led by NML and Aurelius – and by the end of the month, according to some accounts – means she must negotiate, and negotiate fast.
Plenty of analysts are predicting she will not, and that she will once more hit Argentina’s default button. That may play well in superficial, populist, political terms at home, but it would be disastrous for her country’s relations with the US, and for its economy. And she knows it.
The two sides may seem entrenched. But a deal will probably be done. The hedgies will agree limited concessions, which will be extended to other bondholders too. It will cost Argentina many billions of dollars, but the alternative is far worse.
- 1 Tunisia hotel attack: Locals form 'human shield' to protect hotel from gunman Seifeddine Rezgui
- 2 Optical illusion turns blue demon into brunette
- 3 German ethics council calls for incest between siblings to be legalised by Government
- 4 Saudi Prince Alwaleed bin Talal to donate entire $32bn fortune to charity
- 5 Mystery sea creature - with 'fur' and 'a beak' - washes up on remote Russian beach, baffling scientists
The map showing the most dangerous tourist destinations in Europe, according to the Foreign Office
Jennifer Garner and Ben Affleck divorce: Memorable quotes from one of Hollywood's most scrutinised couples
German ethics council calls for incest between siblings to be legalised by Government
Saudi Prince Alwaleed bin Talal to donate entire $32bn fortune to charity
Forget little green men – aliens will look like humans, says Cambridge University evolution expert
The moment a Queen's Guard soldier lost it and drew his gun at annoying tourist
Greece crisis: IMF was pushed around by Angela Merkel and Nicholas Sarkozy – and now it is being humiliated
Greece crisis: The wider lesson is that it’s time to abandon this failed experiment in currencies
'I wish the BBC would stop calling it Islamic State' – David Cameron unleashes frustration at broadcaster
They are neither a 'state' nor 'Islamic': Why we shouldn't call them Isis, Isil or IS
Girl, 7, stares down hate preacher at Ohio festival with pro-LGBT rainbow flag gesture
iJobs Money & Business
£15000 - £17000 per annum: Recruitment Genius: This company offers a range of ...
£15000 - £16000 per annum: Recruitment Genius: Customer Service Advisors are r...
£20000 - £25000 per annum + OTE £45K: SThree: SThree were established in 1986....
£40000 - £60000 per annum: Recruitment Genius: A Compliance Manager is require...