Argentina calls for measure prudential to cancel to vulture funds

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The Minister of economy of Argentina said that they will continue to work to achieve a fair way out. (Photo: EFE)

The Minister of economy of Argentina, Axel Kicillof, reiterated Monday that his country needs an injunction to cancel in a fair and equitable manner to all their bondholders.
After his meeting with the mediator appointed by the American Judge Thomas Griesa in New York (United States Northwestern), Kicillof delivered through a statement ensuring that the decision of judge Griesa on hedge funds makes impossible to pay the debt.
It became known that, after the meeting with the mediator Daniel Pollack, Argentine Minister described as misplaced injustice committed against their country, to fail in favour of payment of a debt which, in her view, would bring heavy consequences for the economy in the region.
At the time, it reiterated its commitment to payment of so-called vulture funds provided it is a free “extorcionismo” via. ‘The Argentine Government wants to continue talking to achieve fair, equitable and legal conditions which implies to consider the interests of 100 percent of the bondholders’, said.
According to the communication, “a measure precautionary measures would be necessary since the case involves not only to litigants, but it could also be extended to all those who entered no swaps and bonds that would hinder payment to holders of swaps 2005 and 2010″.
The past 3 July 2014, the Organization of American States (OAS) adopted a resolution in favour of Argentina against the cancellation of so-called vulture funds. The opinion did not count with the support of Canada and United States.
A vulture fund is a capital that is invested in a State that needs economic help to then recover those funds as a whole and interests through litigation.