VULTURE FUNDS: The Central Bank revokes BoNY authorization to operate in Argentina

27.08.2014 - Pressenza London

VULTURE FUNDS: The Central Bank revokes BoNY authorization to operate in Argentina
(Image by Image by Telam)

According to Telam, The Central Bank of the Argentine Republic (BCRA) revoked BoNY (Bank of New York Mellon) authorization to operate in Argentina, based on the fact that payment to the restructured bondholders was not carried out, said the Cabinet Chief, Jorge Capitanich.

The decision was taken after BoNY’s non-fulfillment of the contract as Argentina’s trustee.

“The representation of the BoNY in Argentina has been revoked”, announced this morning Capitanich in his daily press conference at Government House.

For an in-depth analysis of Argentina’s struggle against the Vulture Funds read Ellen Brown’s article Colonization by Bankruptcy: The High-stakes Chess Match for Argentina at Global Research:

“…Argentina is playing hardball with the vulture funds, which have been trying to force it into an involuntary bankruptcy. The vultures are demanding what amounts to a 600% return on bonds bought for pennies on the dollar, defeating a 2005 settlement in which 92% of creditors agreed to accept a 70% haircut on their bonds. A US court has backed the vulture funds; but last week, Argentina sidestepped its jurisdiction by transferring the trustee for payment from Bank of New York Mellon to its own central bank. That play, if approved by the Argentine Congress, will allow the country to continue making payments under its 2005 settlement, avoiding default on the majority of its bonds.”

Ellen Brown is an attorney, founder of the Public Banking Institute, and author of twelve books, including the best-selling Web of Debt. In The Public Bank Solution, her latest book, she explores successful public banking models historically and globally. Her 200+ blog articles are at EllenBrown.com.

Categories: Economics, International, North America, South America
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