September 15, 2014
Pignanelli says Uruguay 'trustworthy' option to pay Argentine bonds
Former chairman of the Central Bank Aldo Pignanelli considered neighboring Uruguay could be a “trustworthy” option for Argentina to issue sovereign bonds and pay creditors.
“Some months ago, the Supreme Court of Justice of Uruguay determined that the payment of sovererign bonds can not be seized in that country. And to that we have to add (the fact that) that market is trustworthy for American institutional funds,” the ex official told reporters today when queried about the country’s ongoing legal dispute with so called “vulture funds,” a small group of hedge funds that rejected to enter the 2005 and 2010 debt swaps.
Currently an economic adviser for the Renewal Front (RF) party commanded by opposition MP Sergio Massa, Pignanelli pointed out Argentina was facing a difficult scenario due to the debt conflict. “Credit has been cut, dollars for imports are missing and that ends up affecting the level of activity. Many exporters are buying blue chip swap dollars which ends up pushing the blue up,” he considered alluding to greenbacks’ rate in the informal market known here as “blue.”
“A blue dollar at 14 pesos is expensive and an official (rate) of 8.40 pesos is cheap. So, there is a balance dollar, if everything worked ok, closer to 10 pesos.”