November 24, 2014
Gov't says 'Argentina needs stay to honour its commitments'
Before the hearing held in New York today, Cabinet Chief Jorge Capitanich reiterated the importance of the suspension of Griesa’s ruling requested by Argentina.
“We need the stay in order to prevent the implementation of RUFO clause,” he said in reference to the Right Upon Future Offers stipulation that specifies that if the holdout hedge funds receive a better payment than the restructured bondholders, these can demand similar conditions.
The Kirchnerite official explained that Argentina’s lawyers presentation before Griesa will stress the “systemic effects” of the RUFO clause if applied. “It would entail 320 to 350 billion dollars in possible lawsuits against Argentina,” Capitanich said. “We need the stay in order to honour legal dispositions,” he reiterated.
Capitanich stressed once again the government’s willingness to pay and to negotiate with the so-called vulture funds. “Argentina encourages a dialogue that creates fair, equitable, legal and sustainable conditions for the 100% of bondholders,” he stated.
"Argentina has deposited the payment [to restructured bondholders]," he added.