Gov't denies default, bashes US Judiciary
After the government and its holdout creditors failed to strike a deal yesterday, Cabinet Chief Jorge Capitanich said Argentina’s “alleged technical default is an absurd fabrication” and accused the US Judiciary of “malpractice.”
Commenting on the failure to reach an agreement, the Kirchnerite official said that “there was malpractice from the US judicial power” and added that “all three branches of [US] government” are responsible" for the situation.
Despite having met the deadline set by US Judge Thomas Griesa for the country to pay its holdout creditors in full, Capitanich denied that Argentina had defaulted on its debt. He said it is an “absurd fabrication” by credit risk agencies and financial agents that aim at “destroying the country’s debt restructuring process.”
“Argentina has paid and now what is left is that each of the bondholders receive the payment,” he added.
Capitanich bashed Griesa and the mediator he appointed for the negotiations, Daniel Pollack. “There has been a notable incompetence from the special master [Daniel Pollack] to encourage sensible negotiating conditions,” he stated and accused Pollack of “not understanding the process” and failing to respect Argentina’s sovereignty.
Capitanich questioned the independence of the judiciary in the United States and said the judge is “without doubt, an agent of vulture funds.”
“For this malpractice, the US is responsible,” the head of ministers said.
The government announced that Argentina is considering other alternatives, including taking the case to the International Court of Justice and the United Nations General Assembly. “To defend Argentina’s stance is to defend sovereignty,” Capitanich stated.