News Column

Fernandez hits out at vultures bent on destroying restructuring

August 18, 2014

JORGE OTAOLA



ARGENTINA'S President Cristina Fernandez de Kirchner took to Facebook over the weekend to rail against her country's holdout creditors, calling them greedy and bent on thwarting a solution in order to keep the nation mired in debt.


Her post on the social network was her government's latest acrimonious attack on the bondholders she calls "vultures" following the collapse of debt talks that sent Argentine bond prices tumbling. "The main thing with vulture funds is that they don't want a solution," Kirchner wrote.


"Not just out of greed and avarice but also because of a political and geopolitical decision of wanting to indebt Argentina again, and to destroy, in any way possible, the restructuring of sovereign debt."


Argentina defaulted for the second time in 12 years on 31 July after losing a lengthy legal battle with hedge funds demanding full payment on debt they own that stems from the country's record $100bn default in 2002.


Prospects for a private sector solution to the dispute worsened last week after holdout investors said they entertained no realistic offers from bankers for a chunk of the debt.


One of the leading holdout creditors, Aurelius Capital Management, said there was "no realistic prospect"of a private deal and that Argentina's economy would suffer because of it.


Reuters


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Source: City A.M. (UK)


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