On Tuesday, Argentina took its full-page advertisement campaign to the European newspapers, criticizing a ruling by a US court, and the so-called vulture funds over its current debt saga, as the country looks forward to avoid another default.
With the title, “Argentina wants to continue paying its debts but they won’t let it”, the country which is already moving towards recession, pushed vulture funds in a repetition of advertisements which first came out in US newspapers this Sunday.
Cristina Fernandez, who is a leftist President, has long marked holdout funds as “vultures” for picking over the bones during the debt crisis of 2002, which pushed millions of Argentinian belonging to middle class, into poverty.
The long running saga gained new momentum when a week ago, the Supreme Court of US gave a ruling that the government need to pay USD 1.33 billion to the creditors, thus denying the appeal of Argentina challenging court injunctions.
The US courts have also ruled that Argentina can no longer continue paying creditors who were ready to modify their bonds after its default in 2001-02 of USD 100 billion in debt, until it pays the holdout funds requiring full payment.
Moreover, on Tuesday, advertisements appeared in newspapers such as Financial Times and Britain’s Times, as well as in Frankfurter Allgemeine Zeitung of Germany, and El Pais of Spain, all of them criticized the ruling of the court, and slamming the involved funds.
Cris's full page COLOR ad in the journal. Pricey. pic.twitter.com/cIeQBWOBUd
— Katia Porzecanski (@KatiaPorzo) June 22, 2014
Financial Times’ advertisement said, “They (vulture funds) purchased bonds in default at obscenely low prices for the sole purpose of engaging in litigation against Argentina and making enormous profit. The vulture funds have invested millions of dollars in lobbying and propaganda, trying to make the whole world believe that Argentina does not pays its debts and refuses to negotiate.”
Furthermore, the statements also notified that the current ruling would place a country that need to restructure its debt in a “delicate position.”
Argentina has been engaged in a fight with US courts for over a decade, and with creditors who deny accepting a 2005 and 2010 rehabilitation of debt securities, and require full payment.
On Monday, Argentina inquired a US judge to issue a stay order of his ruling that went against the country its case with “holdout” creditors, as it tried to avoid another default that might further depress an economy already moving towards recession.