2014073103

Credit Event

Argentine Republic

Event Publicly Available Information:

Two additional Potential DC Issues to be deliberated by the Convened DC that will decide the Failure to Pay Credit Event for the Argentine Republic:

(i) Has a Repudiation/Moratorium occurred with respect to the Argentine Republic?

(ii) Has a Repudiation/Moratorium Extension Condition been satisfied with respect to the Argentine Republic?

Exhibit C is the following link: http://www.shearman.com/~/media/Files/Services/Argentine-Sovereign-Debt/2014/Arg87-2014-06-27-Declaration-of-Robert-A-Cohen.pdf, which is a certified translation of an official communique from the Argentine Government dated June 26.  This indicates that (i) Argentina has deposited the amounts for the June 30 payments with the trustee (first paragraph of Exhibit C); and (ii) Argentina is committed to honor its debts to 100% of its creditors (last paragraph of Exhibit C).

The statement from the Argentine Economic Ministry on June 18 (available through the following link in Spanish: http://www.mecon.gov.ar/comunicado-de-prensa-del-ministerio-de-economia/), which contains the following statements:  

  • El levantamiento del “stay” por parte del Segundo Circuito imposibilita así el pago en Nueva York del próximo vencimiento de la deuda reestructurada y muestra la inexistencia de voluntad de negociación en condiciones distintas a las obtenidas en la sentencia dictada por el Juez Griesa.  
  • Por último, Argentina reitera la voluntad de pago a sus acreedores reestructurados, ya que siempre ha ofrecido pagar bajo las mismas condiciones y en concordancia con la ley del país.

A press report on June 19 referring to the statements of the Economic Minister (http://es.mercopress.com/2014/06/19/argentina-admite-que-caera-en-default-tecnico-y-culpa-al-juez-griesa) which contains in particular the following two quotes:  

  • La Justicia de los Estados Unidos imposibilita “efectuar el próximo 30 de junio el pago de los cupones de deuda en cumplimiento a sus acreedores reestructurados” a no ser que “pague la totalidad de lo reclamado por los fondos buitres”.
  • Economía indicó que la Argentina ”reitera la voluntad de pago a sus acreedores reestructurados, ya que siempre ha ofrecido pagar bajo las mismas condiciones y en concordancia con la ley del país“.  

Court filing (see Exhibit C)
Statement from the Argentine Economic Ministry

Bloomberg article
WSJ article