July 24, 2014
US Judge Griesa bans Argentina from paying bondholders in BA
US Federal Judge Thomas Griesa, ratified today through an official letter that Argentina’s proposal to carry out a debt exchange and pay its bondholders in Buenos Aires represents a “violation of the rulings and procedures.”
A few hours after President Cristina Fernández de Kirchner announced her administration is willing negotiate with bondholders in New York, Judge Griesa warned against changing the payment jurisdiction, as Economy Minister Axel Kicillof suggested last Tuesday during a press conference.
In that sense, the document signed by the magistrate expressed the Government’s proposal:
“is in violation of the ruling and procedures now in place in the Southern District of New York, and the Republic of Argentina is prohibited from carrying out the proposal of the Economy Minister.”
Last Monday, the US Supreme Court declined to take Argentina’s case against the so called ‘vulture funds’, putting the country one step closer to a financial default.