October 25, 2014
Argentine banks to deposit guarantee to prevent default
Summoned through an emergency meeting, the Argentine private banks association (Adeba) held a reunion today in their Buenos Aires City HQ, where they agreed to offer the Government a 250 million dollar guarantee as a preventive measure to avoid a default.
This proposal arrives as the official delegation is having a meeting with Special Master Daniel Pollack in New York, the mediator appointed by US Federal Judge Thomas Griesa to lead negotiations between the parts over Argentine defaulted bonds.
ADEBA’s 250 million dollars could stimulate NML Elliot hedge fund to request Judge Griesa the reapplication of the ‘stay measure’ in order to prevent future embargos on Argentine assets, and by doing so extend negotiations until January 2015.
According to ámbito.com, the measure has been discussed with Juan Carlos Fábrega, President of Argentina’s Central Bank, and an unnamed attorney in representation of the so called vulture funds, who were favoured by Griesa’s ruling.
The Central Bank denied involvement during the process:
“Regarding the vulture funds conflict, the Central Bank informs it did not knew nor participated in any of the proposals published through the media”, a spokesman from that entity affirmed.