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Ad criticizes the government in the U.S.
La Nacion
April 15, 2010

Bondholders accuse it of "lying" with the swap

Silvia Pisani
US Correspondent

WASHINGTON.- The holders of debt in default added their own ad yesterday, criticizing the government of Cristina Kirchner, whom them accused of "lying" with the swap operation on those bonds.

With a paid ad in the well-known newspaper The Wall Street Journal, Argentina Task Force (ATFA) demanded the President "tell the truth" and "pay your debts" to the thousands of "U.S. citizens" that ended up with those scarce-valued bonds.

"Argentina should negotiate in good faith with all its creditors and resolve the judicial cases against the country before returning to the international capital markets," said Robert Shapiro, co-director of the entity, which is seeking an accord with the government to recognize the value of those bonds.

"Those papers have been in default for too long and it's time that Argentina offer a reasonable proposal for the debt swap," he said.

The entity is one of those which opposes the new government proposal to swap the US$20 billion in unpaid paper that is still in the hands of investors. The majority but not all in the hands of the so-called "vulture funds", that bought them at a very low value to make a good deal now, with the new payment proposal.

The ATFA ad joins the one published two days ago by Greenpeace attacking the President's energy policies. The presence of Cristina Kirchner in Washington didn't only generate critical newspaper ads, but also the distribution of pamphlets with objections to the treatment given to investors.

At the same time, preliminary hearings ended at the arbitration tribunal of the World Bank on the case that thousands of Italian investors led by Nicola Stock hope to open to get full payment on their bonds.

The case, advanced in the ICSID tribunal the organization in which differences put forth by international investors are heard is in its initial stage and will take "several months" before it's known if it will be taken up or not, according to organizational sources who spoke to LA NACION.

Locally, as such, there was more concern about another delay by the Economy Ministry in launching the debt swap. President Cristina Kirchner committed to U.S. businessmen that the new plan would be official between today and tomorrow.

The U.S. market regulator (SEC) has already granted its approval to launch the operation.

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