Argentina's plan to bypass US court ruling branded 'illegal'
President Cristina Fernandez plans to circumvent judge Griesa by making interest payments to other bondholders in Argentina
Friday 22 August 2014
Argentina's debt battle with the US courts has taken yet another twist after a judge branded its latest efforts to avoid paying the vulture fund holders of bonds from its default in 2001 as “illegal”.
Hedge funds led by New York billionaire Paul Singer’s NML Capital swept up bonds cheaply in the wake of the 2001 default. They have refused to accept a debt restructuring, unlike most other bondholders who exchanged their debt for lower-value bonds.
In 2012 Judge Thomas Griesa ordered Argentina to pay the recalcitrant hedge funds $1.33 billion (£802 million) plus interest when it next made a payment to holders of the exchanged bonds.
Argentina, led by president Cristina Fernandez, has refused to comply as this would trigger much bigger payments to the holders of the exchanged bonds. Griesa froze an interest payment to the holder of exchanged bonds in June, pushing Argentina into a second default in 13 years.
Fernandez this week announced plans to circumvent the judge by making interest payments to other bondholders through her nation’s central bank rather than the US banks subject to Griesa’s orders.
“It is illegal, and the court directs that it cannot be carried out,” Griesa said. The president’s bill would make state-controlled bank Banco Nacion the intermediary for bondholder payments instead of BNY Mellon.
- 1 Bill Clinton portrait features Monica Lewinsky reference, artist admits
- 2 What happens to your body when you give up sugar?
- 3 Delhi bus rapist blames dead victim for attack because 'girls are responsible for rape'
- 4 Have sex with your iPad thanks to the new sex toy no-one asked for
- 5 Average penis size revealed: Scientists attempt to find what is 'normal' to reassure concerned men
Bill Clinton portrait features Monica Lewinsky reference, artist admits
Japanese island overrun with cats after population explodes
China's 'Inconvenient Truth': video exposing country’s smog crisis watched 100 million times
Delhi bus rapist blames dead victim for attack because 'girls are responsible for rape'
The 'sex selfie stick' lets you FaceTime the inside of a vagina
New theory could prove how life began and disprove God
'Jihadi John': CAGE representative storms off Sky News accusing Kay Burley of Islamophobia
This is what it's like to be dead, according to a guy who died for a bit
Durham Free School: 'Creationism taught at' free school facing closure
Ukip would cut billions from Scottish budget to fund English tax cuts
Nearly 100,000 of Britain's poorest children go hungry after parents' benefits are cut
iJobs Money & Business
£15000 - £18000 per annum: Recruitment Genius: This is a great opportunity for...
£50000 - £60000 per annum + Excellent Salary: Austen Lloyd: An outstanding new...
£20000 - £21000 per annum + uncapped commission: SThree: As a graduate you are...
£25000 - £30000 per annum + benefits: Ashdown Group: A global leader operating...