Fact Check: Argentina

958 days, 18 hours, 30 minutes ago


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Argentina’s Government Has a Critical Decision to Make This Weekend

On Tuesday, Judge Griesa ordered that Argentina’s officials meet continuously with the country’s creditors to try to negotiate a settlement. It is Friday, and Argentina has yet to come to the table.

Yesterday, both sides met separately with the Special Master Daniel Pollack, who stated that he “proposed and urged direct, face-to-face talks between the parties. The representatives of the bondholders were agreeable to direct talks. The representatives of the Republic declined to engage in direct talks…The time for the Republic to avoid default is short.

Bloomberg reported that Argentine bonds posted the biggest drop in more than a month after the Argentines (again) refused to come to the negotiating table with its creditors. In the article, Marco Santamaria of AllianceBernstein is quoted as saying, In the absence of direct talks between the two parties it’s kind of hard to see how a settlement could be reached…Hope is quickly fading.”

This morning, the Argentine delegation met with the Special Master for just one hour – the shortest of any known meeting to have taken place thus far.

The Argentine delegation is now returning to Argentina to apparently seek further instructions from the government. Let’s hope that rational voices within the government prevail. There is still time to avoid a default, and according to the Special Master’s statement today, the creditors have reiterated their willingness to meet with him and the Republic “at any time.”

But there are less than five days left for Argentina to take them up on that offer. The time for deciding is now.