News / Americas

Argentina Desires Deal Grouping All Holdout Investors Together

Argentine President Cristina Fernandez listens to a speech by Adelmo J.J.Gabbi, president of the Buenos Aires Stock Exchange (BCBA), during the ceremony for the 160th anniversary of the stock exchange in Buenos Aires, Argentina, Aug. 20, 2014.
Argentine President Cristina Fernandez listens to a speech by Adelmo J.J.Gabbi, president of the Buenos Aires Stock Exchange (BCBA), during the ceremony for the 160th anniversary of the stock exchange in Buenos Aires, Argentina, Aug. 20, 2014.
Reuters

Argentina's government on Wednesday ruled out further piecemeal debt talks with a small group of U.S. hedge funds and said the country needed to strike a deal with all bondholders which have rejected past restructuring agreements as a single group.

Latin America's No. 3 economy fell into default again last month after failing to reach an agreement with a group of holdout funds led by NML Capital Ltd and Aurelius Capital Management, which are suing for full payment on their bonds.

Other funds that also have rejected bond swaps that followed the South American country's record default in 2002 lurk on the sidelines and could launch similar lawsuits.

"We have to negotiate with everyone," Economy Minister Axel Kicillof told a group of congressional committees on Wednesday.

A deal is now not seen likely before next year's October presidential election, in which Fernandez cannot run.

Analysts say the dearth of dollars flowing into the economy will stretch already-sapped foreign reserves and intensify pressure on a peso that is falling through one record low after another.

The local currency shed 1.5 percent on the black market on Wednesday to plumb an all-time low of 14.400 as central bank reserves fell to $28.5 billion.

Argentina's Congress began debating on Wednesday a draft bill designed to sidestep a U.S. court ruling banning Argentina from servicing performing debt until it pays the litigating funds $1.3 billion plus interest.

"The main aim of the draft bill is to show that Argentina can pay its debt and wants to pay its debt," senior government official Carlos Zannini told the same hearing.

Scant hope for deal

Kicillof's comments poured cold water on already dim hopes the government might resume talks with NML and Aurelius in early 2015 following the expiration of a legal clause preventing Argentina from paying holdout investors on better terms than those obtained by investors which accepted restructuring agreements in 2005 and 2010.

Investor optimism for a deal suffered a hammer blow last week when President Cristina Fernandez announced plans to make debt payments locally and to push bondholders to bring their debt under Argentine law.

Zannini said the long-term plan was to bring all Argentina's sovereign debt under Argentine law. Erratic policymaking, which saw interest rates cut last week and then raised this week, has highlighted tensions between the pro-expansion Kicillof and the central bank presiding over one of the world's highest inflation rates.

"It is unclear that they are ready to make the adjustments needed to meaningfully control fx pressures," said Daniel Kerner, director of Latin America and Eurasia Group.

Fernandez's tough stance against the funds she denounces as "vultures" has won wide support among Argentines, but a second national strike scheduled on Thursday underscores the growing risk of social unrest the government faces.

You May Like

Tunnel Bombs Highlight Savagery of Aleppo Fight

Rebels have used tunneling tactic near government buildings, command posts or supply routes to set off explosives; they detonated their largest bomb this week under Syria's intelligence headquarters More

Sierra Leone Launches New Initiative to Stop Ebola Spread

Government hopes Infection and Prevention Control Units, IPC, will help protect patients and healthcare workers More

UN Official: Fight Against Terrorism Must Not Violate Human Rights

UN High Commissioner for Human Rights says efforts by states to combat terrorism are resulting in large scale rights violations against the very citizens they claim to defend More

Featured Videos

Your JavaScript is turned off or you have an old version of Adobe's Flash Player. Get the latest Flash player.
Video Claims to Show Shia Forces in Iraq Executing Sunni Boyi
X
Jeff Seldin
March 05, 2015 2:36 AM
A graphic mobile phone video is spreading on the Internet, claiming to show Iraqi forces or Shia militia executing a handcuffed Sunni boy. Experts have yet to verify the video, but already Islamic State followers are publicizing it across social media, playing on deep-rooted sectarian fears. VOA’s Jeff Seldin reports.
Video

Video Video Claims to Show Shia Forces in Iraq Executing Sunni Boy

A graphic mobile phone video is spreading on the Internet, claiming to show Iraqi forces or Shia militia executing a handcuffed Sunni boy. Experts have yet to verify the video, but already Islamic State followers are publicizing it across social media, playing on deep-rooted sectarian fears. VOA’s Jeff Seldin reports.
Video

Video Ukrainian Authorities Struggle to Secure a Divided Mariupol

Since last month's cease-fire went into effect, shelling around the port city of Mariupol has decreased, but it is thought pro-Russian separatists remain poised to attack. For the city’s authorities, a major challenge is gaining the trust of residents, while at the same time rooting out informants who are passing sensitive information to the rebels. Patrick Wells reports for VOA.
Video

Video Volunteer Gauge-Watchers Help Fine-Tune Weather Science

An observation system called CoCoRaHS is working to improve weather science, thanks to thousands of volunteers across the country who measure precipitation in their own backyards, then share their data through the Internet. VOA's Shelley Schlender reports.
Video

Video NASA Spacecraft Approaches a Dwarf Planet

NASA’s Dawn spacecraft will make history on Friday, March 6, when it becomes the first man-made object to orbit a dwarf planet named Ceres. It is located in the asteroid belt between Mars and Jupiter, almost 500 million kilometers from Earth. Among other objectives, Dawn will try to examine two mysterious bright white spots detected on the planet’s surface. VOA’s George Putic has more.
Video

Video Young Muslims Radicalized Online

Young Muslims are being radicalized ‘in their bedrooms’ through direct contact with Islamic State or ISIL fighters via the Internet, according to terror experts. There are growing concerns that authorities and Internet providers are not doing enough to counter online extremism - which analysts say is spread by a prolific network of online supporters around the world. Henry Ridgwell reports from London.
Video

Video African Americans Recall 1960's Fight For Voting Rights

U.S. President Barack Obama and thousands of people will gather in the small southern U.S. city of Selma, Alabama, Saturday, March 7th to commemorate the 50th anniversary of a historic voting rights march that became known as “Bloody Sunday." VOA’s Chris Simkins traveled to Alabama and introduces us to some of the foot soldiers of the voting rights struggles of the 1960’s.
Video

Video Positive Messaging Transforms Ethiopia's Image

Ethiopia was once known for famine and droughts. Now, headlines more often point to its fast-growing economy and its emergence as a regional peacemaker. How has Addis Ababa changed the narrative? VOA's Marthe van der Wolf reports.
Video

Video Cyber War Rages Between Iran, US

A newly published report indicates Iran and the United States have increased their cyber attacks on each other, even as their top diplomats are working toward an agreement to guarantee Iran does not develop a nuclear weapon and to free Iran from international sanctions. The development is part of a growing global trend. VOA’s Al Pessin reports from London.
Video

Video Answers Elude Families of MH370 Passengers

For the families on board Malaysia Airlines flight MH370, an airline official’s statement nearly one year ago that the plane had lost contact with air traffic control at 2:40 AM is the only thing that remains confirmed. William Ide reports.

All About America

Circumventing Censorship

An Internet Primer for Healthy Web Habits

As surveillance and censoring technologies advance, so, too, do new tools for your computer or mobile device that help protect your privacy and break through Internet censorship.
More

More Americas News

UN Official: Fight Against Terrorism Must Not Violate Human Rights

UN High Commissioner for Human Rights says efforts by states to combat terrorism are resulting in large scale rights violations against the very citizens they claim to defend
More

Brazil's Rousseff Races to Contain Congressional Revolt Over Austerity

President meets with legislative leaders from her coalition after they unexpectedly reject presidential decree to raise payroll taxes, help close large budget gap
More

Prosecutor Appeals Dismissal of Complaint Against Argentine Leader

President was accused, by investigator later found dead, of trying to whitewash Iran's alleged involvement in 1994 Buenos Aires bombing
More

Maduro Reprisal Could Clog US Visa Process in Venezuela

President's order to slash US embassy staff will hit consular section, which in 2014 processed 232,500 applications
More

Mexico Captures Zetas Drug Kingpin in Another Blow to Cartels

Arrest is second high-profile capture of a kingpin in past week and a boost to President Enrique Pena Nieto's efforts to battle organized crime
More

Colombia Detains China Cosco Shipping Vessel Over Illegal Arms

The detained vessel, operated by Cosco Shipping Co Ltd, was headed for Cuba when it was stopped; the illegal cargo was detected during an inspection
More