November 22, 2014
Capitanich says economic activity independent of vulture fund battle
Cabinet Chief Jorge Capitanich said “the economic activity is independent” of the outcome of the country’s legal battle against the vulture funds, asked about the impact in the country's economy in case an agreement is not reached with holdout creditors by Wednesday, as ordered by US Judge Thomas Griesa
After a brief review of the past decade’s debt restructuring process, Capitanich said they have is “no direct link to economic activity”. He mentioned the “highest rate of economic growth” in Argentina’s history took place precisely in the past decade, while the country was struggling to restructure its debt.
The Kirchnerite official showed confidence on the economic outlook and explained that it depends on other criteria, such as the country’s trade balance superavit, the influx of foreign currencies from direct foreign investments and the recent currency swap agreement with China.
Capitanich reiterated once again the government’s willingness to pay its debts and also stressed the importance of the suspension of Griesa’s ruling that orders Argentina to pay in full its holdout creditors by Wednesday, a request that the Judge has rejected three times already.
“Since 2001, Argentina has been working on a strategy of growth to honour its financial obligations,” the official said. “Throughout history, debt problems have affected almost all countries. These negotiations are complex and require time, that is why Argentina requests for a stay,” he explained.