News / Brèves Back to previous selection / Retour à la sélection précédente Argentina: No Deal With Vultures—’We Won’t Sign Anything that Compromises the Future of Argentines’ 31 July 2014 (LPAC)—After two days of marathon meetings in New York, Argentina and the British Empire’s vulture funds reached no agreement on payment demanded by the vultures—$1.6 billion—and as of 5:00 p.m., the end of the 30-day grace period granted on June 30, when Argentina also failed to pay the vultures, Standard & Whores declared the country to be in default on its debt obligations. In a press conference at the Argentine consulate, Finance Minister Axel Kicillof was very tough, making clear that his government had no intention of sacrificing its sovereignty or decisions as to the path of its economic development. "We will sign nothing that compromises the future of Argentines," he said. "We’re not going to agree to just anything to negotiate with the vulture funds. We represent a State that has its laws, and that will defend the rights of Argentines and not give in to extortive demands." Argentina is willing to talk, he said, "but we can’t be forced to do something illegal, unfair, and unjust that can put the Argentine economy at risk." He slammed Federal Judge Thomas Griesa, author of the ruling ordering Argentina to pay the vultures, for causing this situation. His decision to let the vultures decide on whether to reinstate a stay on his original ruling, as Argentina had requested, rather than taking responsibility himself, was ludicrous, he said. It was obvious the vultures would never grant a stay; they wanted to be paid more than the 92.4% of Argentina’s restructured bondholders, Kicillof explained. They were offered the chance to join the existing debt swap, with a 300% rate of return, but they turned it down. Argentina couldn’t meet their terms, he said, without triggering the Rights Upon Future Offers (RUFO) clause, which would unleash a flood of lawsuits from other bondholders demanding the same terms as the vultures. "This is now on Griesa’s back," he said. The situation has no precedent. Argentina paid, has funds, and will continue to pay when the next payments come due. "How can you have a cessation of payments declared by a judge? How can he block payments? The money is there, and if this were a default, it wouldn’t be there." Special Master Daniel Pollack issued a press release insisting on his neutrality in the case and willingness to help, but then pontificated that "the laws of the United States must be obeyed by all parties," and backed Judge Griesa’s ruling that Argentina had to pay the vultures at the same time that it paid its restructured bondholders. That’s the law, he said. This morning, reports had circulated that the Argentine Banking Association (Adeba), representing private banks, had proposed buying up the vulture funds’ defaulted bonds, with the idea that this would induce the vultures to agree to reinstating a stay on Griesa’s ruling. Kicillof denied any knowledge of this plan, but didn’t rule out the possibility that "there might be solutions of this kind" that could evolve, as "there are many third parties that might be interested in remedying this situation."