UPDATE 2-Argentina concedes creditors do not want in on bond swap

martes 9 de septiembre de 2014 20:18 GYT
 

(Adds quotes, new date for passing law)

By Alejandro Lifschitz

BUENOS AIRES, Sept 9 (Reuters) - A majority of Argentina's creditors are opposed to their bonds being moved to a new jurisdiction under a government proposal that would sidestep a U.S. court ruling that toppled it into default, the country's economy minister said on Tuesday.

Argentine Congress, which is controlled by allies of leftist President Cristina Fernandez, is expected to pass the plan into law on Wednesday. But that would make little difference if investors do not agree, meaning Argentina would remain in default until its legal battle with creditors is resolved.

"It is not the wish of a majority of bondholders, as far as I know, to have a big change in the jurisdiction," Economy Minister Axel Kicillof told a number of Congressional committees.

The South American country last month unveiled a two-pronged plan to make payments on its foreign-held bonds locally and offer creditors to swap their notes for bonds under Argentine or French law to skirt a ruling barring it from servicing its debt in the United States.

But Kicillof's debt swap plan received a cold reception in New York last week, where Argentine economy ministry officials met with investors, Thomson Reuters' IFR reported.

Investors were concerned about legal and logistical hurdles and underscored the lack of financial incentive to participate.

Argentina defaulted in July after a U.S. court blocked an interest payment to holders of its restructured debt governed by U.S. law, ordering the government to settle first with a small group of so-called "holdout" U.S. hedge funds who spurned previous bond swaps and demand full payment.   Continuación...