G20 endorses anti-vulture debt guidelines.
Source: Buenos Aires Herald
The Argentine Economy Ministry celebrated yesterday another international acknowledgement of the importance of the countrys long-standing legal saga with the so-called vulture funds as the G20 group of developed economies made references in its final document to the importance of promoting new rules for debt restructuring processes.
We welcome the progress made to strengthen the orderliness and predictability of the sovereign debt restructuring process, the final document agreed in Antalya, Turkey, says under a section dedicated to building a stronger, more resilient global economy. It also praises recent efforts by the Financial Stability Board (FSB) to regulate banks in order to avoid a financial crisis such similar to that of 2008.
According to Argentina's Economy Minister Axel Kicillof, the issue will now be key to other countries because almost US$900 billion worth of debt were issued under previous rules, including Argentine notes issued under the Alianza government from 1999 to 2001. Kicillof said that half of the existing debt restructurings are under risk of being attacked as Argentinas was by Paul Singers NML Capital and other hedge funds, and praised the outgoing administration of Cristina Fernández de Kirchner for being a pioneer in a matter of global consequences.
In another section of the document focused on Issues for Further Action, the G20 said that the new contractual clauses that protect sovereign debt restructurings from aggressive minority bondholders aiming to move matters to courts should be applied to all new bond issues. Given the challenges litigation poses and in order to strengthen the orderliness and predictability of the sovereign debt restructuring process, we welcome the international work on strengthened collective action and pari passu clauses. We call for their inclusion in international sovereign bonds and encourage the international community and private sector to actively promote their use, the G-20 said.
Read more: http://buenosairesherald.com/article/203105/g20-endorses-antivulture-debt-guidelines
Ah. To be a fly on the (Cayman Islands) wall and be able to hear Paul Singer chew his personal senator, Narco Rubio, out. I hope that runt remembered his water bottle!
rurallib
(62,453 posts)just some guidelines that can probably be ignored?
The US will probably ignore these guidelines as long as the money floods into their politicians.
You are right though - Singer is probably ripping on Boy Wonder Rubio for even letting it get this far.
forest444
(5,902 posts)For the time being, Argentina's refusal to pay the ransom has made Greasa's rulings mostly meaningless - just like his utterances (according to those present at the hearings, the man's completely senile).
As it happens though, elections are this Sunday in Argentina. It'll be very close, and if the right-wing (Singer-financed) candidate, Mauricio Macri, wins - well, let's say Singer's bribes will have finally paid off.
We shall see.