It’s increasingly likely that Argentina will come up with a way to get around a US supreme court ruling on bond payouts. Here is the background …Argentina defaulted on bonds following a debt crisis in 2001-2002. 92% of the investors agreed to haircuts, but an alleged “vulture fund” picked up an 8% share at rock bottom prices and refused to negotiate. In June, the US Supreme Court ruled that Argentina Cannot Selectively Default on the small group of hold-outs. Today El Pais reports Argentina Offers to Pay Creditors in France. Comments Regarding “Vultures”I have nothing against “vultures” and do not even like the term. In general, vultures serve a purpose, as do those who short stocks. That said, I find the US Court ruling that Argentina Debt Swap Proposal is Illegal rather odious.
This post was published at Global Economic Analysis on September 03, 2014.