Griesa locking up under conditions to Argentina

The New York judge called for legislation that prevents pay bondholders repealing

Thomas Griesa was wait a day. The New York judge finally decided to give the order for interim measures that prevented Argentina pay the bondholders, because he understands that the situation that led to the blockade has changed significantly rise. It is a key step for the country to return to the capital markets for financing. But conditional on existing prohibitions are repealed and the agreement in principle is respected.

Griesa made his decision last 24 hours of the hearing held in New York with the legal representatives of the parties to the dispute public. The Argentine Government had requested the "automatic" lifting of the precautionary measures to comply with the agreement. But the big funds tried to be delayed for a month, waiting to see the decisions taken by the legislative and give option to negotiate smaller investors.

"Circumstances have changed so significantly as to declare unjust and detrimental to the public interest precautionary measures" can be read in the court order signed by Thomas Griesa two days after the announcement of the pact. He also noted that "there is a need for certainty and an end" in this process awaits achieved by lifting the financial blockade. "It is a decision that is not taken lightly," the judge repeated his argument.

The judge had already indicated last February in a preliminary ruling that was willing to open his hand, because he understood that the new Argentine executive had been willing to settle the dispute. With its order lifting the financial blockade is cleared, therefore, the request made by the majority of creditors to postpone 30 days to process. It remains to be seen whether small bondholders appeal the decision.

Griesa recognizes the right of small plaintiffs to appeal the order lifting the financial embargo. "But appeals must occur quickly to ensure certainty and purpose necessary for existing creditors to succeed," he says. Legal representatives of these investors indicated during the hearing that they did not change the circumstances, because they had no choice to negotiate.

The mediator Daniel Pollack announced Monday an agreement in principle that solves 85% of claims, including agreements that were reached in 2005 and 2010 to restructure the debt. Now the hot potato passes Argentine Congress and the Senate, which must repeal legislation that prevents pay the bondholders to make the agreed payments. For this you must issue new bonds, to be financed by resorting to the international market.

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