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    Argentina's Ministry of Economy to Investigate Into Possible Debt-Related Fraud

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    Argentina’s Ministry of Economy has announced it will investigate into the possible “multimillion fraud” related to Argentina’s debt.

    BUENOS AIRES, August 2 (RIA Novosti) – Argentina’s Ministry of Economy has announced it will investigate into the possible “multimillion fraud” related to Argentina’s debt.

    Late on Friday, the ministry said in a statement that Argentina’s Securities and Exchange Commission will appeal its US counterpart to receive “precise information about the operations with the bonds.”

    The department claimed that US court could have possibly falsified the rulings to allow the hedge funds, who have collapsed the negotiations deliberately, receive financial compensation in case of Argentina’s default.

    “The way US judge was acting, shows that his aim was not to enable justice and balanced negotiations for both sides, but to create favorable conditions for the predatory creditors,” the ministry said.

    Earlier on Friday, Argentinian media reports suggested, that the management of The International Swaps and Derivatives Association (ISDA), that declared Argentina in default, included the representatives of Argentina’s bond holders.

    Argentina restructured 93 percent of its debt but creditors holding the other 7 percent of the bonds did not accept Argentina’s proposal and filed a lawsuit, demanding a full payment.

    A New York court earlier ruled that Argentina had to pay $1.33 billion to its 2001 bondholders who did not agree with the restructuring deal.

    The court also blocked the transfer of the sum that Buenos Aires forwarded in order to cover its restructured debt, forcing the country to start negotiations with creditors who refused the restructuring deal.

    Over the last 40 years Argentina went through three major debt crises, in 1982, 1988 and 2001, with the default declared by the country’s government in 2001 becoming the largest in history.

    Tags:
    fraud, economic crisis, debt, economy, Argentina
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