November 24, 2014
Gov’t says ‘acceleration’ on restructured bonds not possible
Cabinet Chief Jorge Capitanich rejected the possibility raised last week by Argentina’s holdout investors to declare principal and interest immediately due, a move known as acceleration, saying the conditions for it have not been met.
The government official said there is no possibility for holdouts to take this strategy, that would push the country into a new restructuring on up to u$s 30 billions in debt, “because the conditions stipulated in the prospect have not been met”.
Capitanich reiterated his criticism against US Judge Thomas Griesa for not allowing exchange bondholders to receive payment and said that the judge “cannot make any decision because he would be violating judicial security principles”.
“He is hampering the payment process by following vulture funds’ instructions,” the official added during his daily press briefing at government house.
“He cannot declare Argentina in contempt because he would not be able to enforce it,” he said in reference to Griesa’s recent warning against what he considered “misleading statements by the Republic”.
Capitanich said no new meeting has been scheduled between the country and the holdouts by US Court-appointed mediator Daniel Pollack.