Sovereign Debt Negotiation by ghokane


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									                           Sovereign Debt Negotiation
The Economy Ministry officials hope to close by mid of this month to reconcile the debt with the
Paris Club, due to technical discussions about the total amount of debt already in its final stretch.
If everything goes on track, it would not be in “mid-February 2011″ the time that Argentina
submit to the Paris Club a concrete proposal, Telam said sources close to the negotiations.
The contacts were formally opened with the visit of the delegation of Argentina who led the
Minister of Economy, Amado Boudou, last December, after the agency gave its approval to the
claim     made        by   the    Government       to     exclude     the     IMF      negotiations.
In this context, the economic portfolio maintains as its goal to renegotiate the debt “at the end of
the                first            semester                of               the                year.
The government aims to achieve the highest possible deadlines for the restructuring, which will
be in the forefront of trading, compared with the rate and final amount to be restructured, as
indicated. Debt to these premises could be around USD $ 7.300 million.

U.S. funds have offered their support to the president of Argentina, Cristina Fernandez, who this
year wants to debt negotiation it has with the Paris Club. His Government hoped to reach an
agreement with creditor countries, and despite the „lobby‟ American food press to thwart the
president of the southern country, experts predict a bright future for Argentina‟s debt in 2011.

Interest                                                                                  Funds:
Some U.S. funds, like Gramercy and Nomura Securities, have backed the return of Argentine
debt bonds to soar as a result of negotiations with the Paris Club and the balance of the debt of
Argentina and its creditors. Obviously they are holders of bonds purchased to auction.

Moreover, these funds have shown that during 2010 the dollar-denominated bonds from
Argentina soared by 35.8%, and so have behaved much better than other debt securities of
emerging countries .

No                  food                interest             lobby             Argentina:
Amado Boudou, economy minister of Argentina, met for the second week of September with
officials of the Paris Club to consider how the timing and amount to which Argentina would
face, on the instructions of the chair.

The same week that the meeting is held, a U.S. food lobby began pressing for the U.S. would not
accept the two conditions sought by the government of Argentina. The first was the term that
Cristina Fernandez would have to deal with debt. Argentina called for six years, while the Paris
Club does not seem willing to accept a period exceeding eighteen months. However, in the
„American Task Force Argentina‟ (ATFA) are reluctant even to this term. Nor want the
International Monetary Fund (IMF) is not present in those negotiations, as you want Argentina
and accepted the select club.

The American Task Force for Argentina (ATFA, for its acronym in English) is an alliance of
individuals and organizations together to reach an agreement “fair and equitable” the default and
the restructuring of sovereign debt of the Argentine government.
The ATFA was formed in response to concerns about reckless driving sovereign debt of
Argentina. The Task Force works with legislators, the media, creditors and other interested
parties in the United States, Argentina, Europe, Asia and Latin America. In particular, the Task
Force advises the public and increase awareness about the dangers associated with the Argentine
government‟s inability to take charge of your failure to pay under the international standards.
The final objective is to strengthen stability ATFA of global credit markets, work to achieve an
appropriate outcome for the remaining creditors, ensuring the integrity of American law and
strengthen     crucial    bilateral    relations  between      the    U.S.     and    Argentina.

Other                                                                             Stakeholders:
The international crisis has promoted the orders of the European headquarters to industrial or
service activities in Argentina, who pressure their governments to close an agreement with a
view towards a decrease in the cost of credit, all of which plays to Argentina.
The Japanese are among the most interested in getting soft financing from their headquarters and
credit agencies, and provide for investment in sectors as diverse as wind energy, a sector
expected to grow strongly in the southern country.

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