Wednesday, August 20, 2014

Argentina comes with trick to circumvent problem with the American right – z24

Argentina comes with trick to circumvent problem with the American right – z24

Argentina & # Xeb, is a defaulter, says ratings agency S & amp; P Wednesday, the country can be financial & # Xeb,.. would default le obligations How did it come to this For the second time in 15 years Argentina & # Xeb threatening;. getting the status of defaulter The South American country depends claims of approximately $ 29 billion over the head as the Wednesday does not fulfill its financial & # Xeb, may satisfy le obligations. That amount is equal to the total size of the currency reserves of the country's financial & # Xeb;. crisis threatens to arise from the conflict that Argentina & # Xeb; uitvecht with holders of bonds that already renounced the country in 2001 Many creditors from that. have in recent years taken their losses due to exchange against new, smaller loans the old loans time, however, a group of hedge funds adheres to the requirement for full refund receivable on old bonds Argentina & # Xeb;. refuses. those limits, and even the competent American court forced the country for this purpose. Argentina & # Xeb; needs of the American Supreme Court $ 1.3 billion in arrears remitted to bondholders who did not accept the amnesty in 2001. Argentina & # Xeb; fears that this may lead to claims of other bondholders who demand the same treatment. , Thereby Argentina & # Xeb may according to the ruling of the court not pay other creditors, as long as the claims on the old bonds are not met. As a result, the country would not be able to fulfill what the position of Argentina & # Xeb its obligations at the end of this month; on the financial & # Xeb; le markets would be seriously detrimental. By Wednesday dollar 539 million in interest must be paid. Default gives other international creditors the right to request their money. Immediately This can lead to claims of about $ 29 billion, as calculated financial news agency Bloomberg. Economy in recession, economists expect the Argentine economy verzeilt by default in a recession. The value of the Argentine peso will thereby substantially likely to fall while inflation firm increases. Unlike the 2001 crisis is not, however, a lot of turmoil in international markets provide. The International Monetary Fund (IMF) said Tuesday knowing that a potential default & quot; deplorable 'would be. At the same time, the fund does not expect any major impact, since Argentina Xeb & #; has long been cut off from the financial & # Xeb; le markets. Argentine President Cristina Fern & # XE1; ndez de Kirchner Tuesday stressed again that all creditors & quot; fair conditions' will be refunded. Solution yet in sight? S & amp; P believes that Argentina Xeb & #; already being status wanbetalerheeft. The rating agency downgraded Argentina Xeb & #; Wednesday at the level of 'selective default'. Currently still find discussions between Argentina & # Xeb; and a group of American creditors over a solution, which at the last moment should prevent the country defaults on debt repayment. The deadline is Wednesday. Reportedly, a group of Argentine banks willing to lend a helping hand stabbing by taking to prevent Argentina & # Xeb so over the debts of the American investors; as defaulter book will come stand.

President Cristina Kirchner of Argentina. Photo EPA

Argentina has made a new proposal to still be able to meet its financial obligations to

<-.! Z24 / economics / rectangle ->

The country wants outstanding bonds to voluntarily convert to loans under Argentine law, so that a previous ruling under American law fall an American court can be circumvented.

Argentina came late last month for the second time this century as a defaulter to book stand. creditors The country could not pay at that time, due to a protracted conflict with holders bonds on which the country years ago renounced. An American judge ruled that Argentina current holders of American debt may only pay as well as the requirements of the transverse creditors are satisfied.

a provision is intended Argentina now work around the bonds issued under American law into loans under Argentine law. Thus the control of the American judge on the loans would disappear.

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