Argentina Creditors Can’t Seize Assets of Central Bank, Court Rules

[Judi Lynn]

Argentina Creditors Can’t Seize Assets of Central Bank, Court Rules

Decision reverses earlier ruling that would have opened nation’s reserves to hedge funds

By
Julie Wernau

Aug. 31, 2015 12:56 p.m. ET


Creditors owed billions by Argentina can’t seize the assets of its central bank, a U.S. court ruled Monday.

The decision marks a key reversal of a district-court ruling that would have opened the sovereign nation’s reserves to hedge funds who sought to declare Banco Central de la Republica Argentina (BCRA) an “alter ego” of the South American nation.

Creditors who hold $2.4 billion in judgments against the nation stemming from a 2001 default on more than $80 billion in debt have repeatedly failed to find a way to collect. Argentina has repeatedly referred to the hedge funds as “vultures.”

. . .

A three-member panel of judges at the 2nd Circuit said U.S. District Judge Thomas Griesa erred in ruling that Argentina’s central bank had waived its sovereign immunity.

More:
http://www.wsj.com/articles/argentina-creditors-cant-seize-assets-of-central-bank-court-rules-1441040165

LBN:
http://www.democraticunderground.com/10141194009

[Judi Lynn]

1. US court backs Argentina in asset seizure appeal

US court backs Argentina in asset seizure appeal
AFP
September 1, 2015, 4:21 am

New York (AFP) - A US appeals court supported Argentina's appeal Monday against an earlier ruling that could have permitted a group of creditors to seize assets of Argentina's central bank.

The US Court of Appeals in Manhattan said the September 2013 ruling by lower court judge Thomas Griesa that allowed exceptions to the sovereign immunity claims of the Central Bank of Argentina were in error.

Griesa, who has consistently backed New York hedge funds in their 10-year campaign to claim payment on long-defaulted Argentine bonds, had opened the door for them to seize funds of the central bank held in US banks in lieu of payment.

Argentina has refused to pay the hedge funds, maintaining that their decision to not join most of the country's creditors in a restructuring of its debt gave up their rights for payment.

More:
https://au.news.yahoo.com/thewest/a/29398876/