Viernes 1 de agosto de 2014
A Costly, Lose-Lose Situation for Argentina and the Holdouts
Autor: Eduardo Levy Yeyati
A decision by a judge in the Federal District Court in Manhattan, ordering Argentina to pay a group of hedge funds, is being criticized because it rewards vulture investors that purchased defaulted bonds at deep discounts. The ruling encourages defaulted creditors to hold out, which jeopardizes sovereign bond exchanges – which are often used by international credit markets to resolve sovereign insolvency events in the absence of international bankruptcy proceedings. This fosters government moral hazard by granting holdouts full recovery, regardless of the perceived risk of the country's policies, at the expense of the country's taxpayers.
The court ruling opens new fronts of litigation: the payment agent is bound to be sued both by bondholders and by Argentina if it fails to fulfill its duties. It may be impossible to implement and it extends the effect of an American ruling to non-U.S. law instruments and entities.