ARGENTINA CAPITULATES

Argentina’s lawyer has said that the country will negotiate with NML, the group of hedge funds suing the country for $US1.7 billion in bonds.

The country met with Judge Griesa, the Judge that ordered the country to pay out bondholders back in 2012, Wednesday afternoon around 2:00 pm EST.

For over a decade, Argentina has said that under no circumstances would it pay a group of “vulture” hedge funds led by Paul Singer, of Elliott Management.

The group, known as NML, bought Argentine debt after the country’s collapse in 2001. When other bondholders restructured in 2005 and 2010, NML refused. Instead they sued the country for the full amount of their payout.

Argentina fought, and so did the funds, once getting Ghanaian Court to impound an Argentine naval vessel as collateral.

This, naturally, upset Argentine President Cristina Fernandez de Kirchner. The country appealed Judge Griesa’s ruling all the way up to Supreme Court, asking the highest Court in the United States to hear their case. On Monday, their request was denied.

Now here’s the thing. Argentina had to fight until the bitter end, President Fernandez explained why in a televised speech on Tuesday night. She told the entire nation that if the country paid NML, it would be in violation of its agreement with other bondholders, and would automatically have to pay not just $US1.7 billion, but $US15 billion.

And according to that agreement, it could not even negotiate with NML until 2015, unless it was forced.

Today it was forced.

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