Saturday, March 30, 2013

Argentine defiance in appeal of $1.4 billion debt ruling aims at unlikely Supreme Court win

Argentine defiance in appeal of $1.4 billion debt ruling aims at unlikely Supreme Court win
By Michael Warren, The Associated Press | The Canadian Press

BUENOS AIRES, Argentina - With just hours to go before Argentina has to show its last cards in a billion-dollar debt showdown in the U.S. courts, President Cristina Fernandez seems to be keeping up her "we're going for more" motto. Her government is reportedly preparing a response that analysts say could lead the country into another catastrophic default.

Argentina has until midnight Friday to propose how it would satisfy a $1.4 billion judgment won by plaintiffs who have insisted for a decade on getting full payment in cash, plus interest and penalties, on sovereign debt that the country hasn't paid since its world-record default in 2002.

Government officials weren't talking in public about the plan this week, but they have repeatedly said that the plaintiffs it considers "vulture funds" should get no better than what 92 per cent of other investors in Argentina accepted in 2005 and 2010 in exchange for their defaulted bonds: a package of new bonds that were initially worth less than 30 cents on the dollar.

The exact details likely won't be known until just before the deadline, but the broader aspects have been widely reported in Argentina's media: Rather than the quick cash payout ordered by the courts, it will offer new bonds that won't come fully due for up to 25 years. And rather than pay in full, the government will insist on paying no more than 30 per cent to start with.

Tuesday, March 26, 2013

Cyprus confiscates Bank Deposits

Could it happen Here ? Cyprus reaches last-minute deal on 10 billion euro bailout By Jan Strupczewski and Michele Kambas BRUSSELS/NICOSIA | Mon Mar 25, 2013 9:09am EDT (Reuters) - Cyprus clinched a last-ditch deal with international lenders to shut down its second-largest bank and inflict heavy losses on uninsured depositors, including wealthy Russians, in return for a 10 billion euro ($13 billion) bailout. The agreement came hours before a deadline to avert a collapse of the banking system in fraught negotiations between President Nicos Anastasiades and heads of the European Union, the European Central Bank and the International Monetary Fund. Without a deal, Cyprus's banking system would have collapsed and the country could have become the first to crash out of the European single currency. Swiftly backed by euro zone finance ministers, the plan will spare the Mediterranean island a financial meltdown by winding down the largely state-owned Popular Bank of Cyprus, also known as Laiki, and shifting deposits below 100,000 euros to the Bank of Cyprus to create a "good bank