October 24, 2014
Gov't confirms BoNY notice to pay restructured bondholders
Cabinet Chief Jorge Capitanich confirmed that Argentina has formally demanded the Bank of New York Mellon (BoNY) and other financial entities, in a reference to Citibank, to guarantee that restructured bondholders receive the u$s 539 millions deposited by Argentina. “There is a contract that has to be executed,” Capitanich stated. “Let there be no mistake, BoNY has to pay”.
The Kirchnerite official explained that this decision aims at “creating the conditions needed for guaranteeing payment” and that it shows once again that “Argentina is honouring its financial obligations”.
In his daily press briefing at government house the chief of ministers blamed financial institutions for failing to guarantee that bondholders receive payment and stressed that Argentina will continue to defend the interest of exchange bondholders.
Capitanich referred to the recent discussions at the International Swaps and Derivatives Association (ISDA) over Argentina’s debt and the triggering of Credit Default Swaps (CDS) saying their decisions are “confusing to say the least”.
After announcing last week that Argentina had “failed to pay”, yesterday the ISDA decided that the "failure to pay" event does not mean that a “moratorium occurred”, and that the government will not have to pay expired debt insurance.