The international community reacted with perplexity and alarm to the debt conundrum created by an unprecedented decision of the US judicial system. Amid overwhelming global support, Argentina is facing this extravagant ruling as every responsible nation would: defending its sovereignty and reaffirming its willingness and capacity to honour its debts with 100% of its creditors under fair, equitable, sustainable and legal conditions. In fact, it has a fair and reasonable offer on the table that would put an end to this litigation.
Due to this ruling, good faith bondholders unrelated to the litigation are being blocked from collecting regular payments duly made by Argentina – which are rightfully theirs. At the same time, the litigant vulture funds are holding the 92.4% of creditors hostage and demanding a profit we estimate at 1600%. This position is unreasonable and is a direct threat to the stability and predictability of the global financial system. It would also mark the definitive divorce between risk and yield, violating one of the basic pillars of modern capitalism.
