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December 18, 2014
Wednesday, July 30, 2014

Bank representatives held talks with holdouts in New York

Banco Macro director Sebastián Palla and other representatives of Argentine banks have made contact with 'vulture funds' in New York in order to lay out a proposal to avoid default.

The negotiation, which started around midday, is separate to talks held between Economy minister Axel Kicillof and mediator Daniel Pollack.

Palla, who was a part of former Economy minister Roberto Lavagna's team and who designed the first debt swap in 2005, will try to close the deal first proposed yesterday evening by banking organisation ADEBA. Other banking executives already in New York on other business have also joined the meeting.

Local banks have offered to buy in pesos Argentine bonds denominated in dollars, which would then be handed over to the vulture funds currently demanding full payment of titles defaulted in 2001. In exchange, the financial entities would receive the defaulted bonds, and therefore the litigation currently presided over by judge Thomas Griesa.

This would be carried out without government participation, which means the RUFO clause that expires on December 31 and prevents a better offer being made to holdouts than to bondholders that restructured in 2005 and 2010 would not be triggered.

According to bankers close to the deal, the figure would be worth around 1.6 billion dollars.
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Tags:  Banks  Vulture Funds  Argentina  negotiations  





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