IKN

Tis rigor and not law

Argentina bonds: Cute posters in town, FinMin Kicillof speaks

First the posters that Buenos Aires residents found plastered all around the city centre this morning:
That transates as, “Enough, vultures!” and then, “Argetina united in a national cause”. Remind you of the Braden or Perón poster and all its baggage? Yup, me too.
Next, newspaper La Nacion (normally no friend of this government) does a good job of picking the strongest soundbite lines from the declarations of Argentina’s Minister of the Economy Axel Kicillof yesterday. Here they are translated:
  • Everybody relax, this has been studied deeply. Actions have been taken to conteract the risk posed by a small group of bond holders that wants nothing else than to ruin countries and try to stop the reconstruction of the Argentine fianncial situation.
  • Some people (bond holders) don’t want to let Argentina pay its debts.
  • My feeling is that they want to bring down our debt restructuring
  • If we apply the Griesa ruling and Argentina is obliged to pay the vulture funds, the country will go into default
  • We are going to try everything in order to pay [keep paying] the restructured debt
  • Some [presidential] candidates propose the overendebted model (a clear reference to Macri)
  • This government did not put the country into debt. We have dedicated ourselves to paying for the financial mess left by the neoliberal fiesta.
  • They [the vulture funds] shall not pass, they’re not going to change the restructuring of the debt
  • This judgement says that in order to pay bondholders we have to pay the vulture funds as well, this would push Argentina into default.
  • The vulture funds are vultures because they do not negotiate
  • If a sentence tells us to commit suicide, we cannot accept it
  • We cannot be in a situation again where, in order to pay the debt, hunger will rule
  • They’re coming for everything, for all the possessions of Argentina

Along with all that, Argentina has also stated that it’s willing to keep paying out to ther 93% of bond holders who entered into the restructured debt all those years ago but will bypass the US system and pay them via a window to be set up in country. In other words, Argentina’s doing exactly what your humble scribe predicted on Monday morning.

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