Argentina hails UN vote on sovereign debt restructuring

[forest444]

Source: BBC News

Argentina has welcomed a UN resolution creating a new global framework for sovereign debt restructuring. Foreign Minister Héctor Timerman said it was a resolution for economic stability, peace and development. The UN said countries should protect governments from minority creditors who refuse to go along with the majority in mutually agreed debt restructuring.

Argentina has been fighting US hedge funds who are demanding full payment on defaulted bonds. The hedge funds had refused to go along with the majority of the country's creditors and accept a restructuring deal. Argentina defaulted in 2001. The hedge funds scooped up its bonds years later at a fraction of the price and have since won US court backing to claim full payment.

Argentina struck repayment deals in 2005 and 2010 with more than 92% of its bondholders. The government argues that if it pays the hedge funds the full amount demanded (a payout of up to 1600%), it would undermine the basis for the repayment deals struck with its other creditors.


Read more: http://www.bbc.com/news/world-latin-america-34217115

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UN General Assembly resolutions are non-binding; but this resolution formally puts vulture funds afoul of the international community - which is certainly fitting since they are mostly TARP babies and Caymans-based laundries.

[PatrickforO]

1. If we actually cared about each other, we'd get rid of the bankers by liquidating the

FED, the IMF and the World Bank. Instead, governments could nationalize their central banks and print the money they need for infrastructure improvements and benefits for their people.

[forest444]

3. No can do!

That milk cow is way too to fail.

Even so, it's important to note that Argentina has been paying its bondholders, and doing so at a cost of $14 billion annually (something it can only barely afford). Basically this resolution asks that countries be allowed to continue paying their bondholders, just as Argentina has been doing on time since 2005 (revolutionary idea, I know).

[leveymg]

2. States should treat hedge funds as what they are - pirates in $4000 suits

[forest444]

4. Amazing, isn't it. Their laundromats are in the Caymans, and they enjoy full access to U.S. courts.

When the only full access they should have, is to U.S. jails.

[DirkGently]

5. Good start. n/t

[Judi Lynn]

6. Thank you. n/t