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Swap: another extension is spoken about
Clarin
June 16, 2010

From Japan, Finance Secretary Hernan Lorenzino said that the adhesion to the swap in that country was "overwhelming".

And he said that 99% of the bonds that were in the hands of Japanese were swapped between 2005 and the process that is in process. However, in the local market rumors grew that warned that the government could see itself obliged to extend the deadline for the close of the swap by some days, due to certain technical difficulties in subscribing to the new bonds.

"It isn't ruled out that the government extend the deadline for entering the swap by two or three days," argued various analysts and market operators consulted by Clarin.

But they said that the extension "is not something negative, but which follows that there are some operational difficulties for many bondholders being able to enter the swap without problems."

They refer to many operators having had difficulties at the time of filing for their clients to swap their bonds in default for the new bonds that the government is offering the holdouts.

It was precisely those operating difficulties that made them extend the swap once before. It's that originally the date for cutting off acceptance of the government's proposal was June 7th, but at the request of the Italian Banking Association and the CONSOB (the market regulator in that country), it was extended until next Tuesday, the 22nd.

Today, Lorenzino and his second in command, Adrian Cosentino, will be in Italy. They will show the results they obtained in Japan: in Tokyo, the banks managed to get 72% of the samurai bonds to enter the swap, while among the bonds emitted in euro-yens, the adhesion was 82%.

"The good will show by personally coming to present the progress of the swap was highlighted," Lorenzino said before leaving for Rome.

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