Argentina says Germany "hostile" toward its debt revamp efforts
By Hugh Bronstein
BUENOS AIRES, Sept 24 (Reuters) - Germany has a "hostile attitude" toward Argentina's debt restructuring effort, cabinet chief Jorge Capitanich said on Wednesday after local newspapers ran an advertisement quoting a German official criticizing Argentine policymaking.
The advertisement, posted by a U.S. lobbying group on behalf of hedge funds suing Argentina for full repayment on defaulted bonds, quotes German Finance Minister Wolfgang Schauble calling Argentine policymaking "an example of lack of strength."
Capitanich shot back that "Germany has always had a hostile attitude toward Argentina, from an economic and financial point of view.
The ad marked the latest spat generated by Argentina's July default, which sealed the South American country's exclusion from the international capital markets at a time of recession, sinking central bank reserves and soaring inflation.
Last week the government expressed "deep indignation" after a U.S. diplomat referred to the country as being in default.
Argentina says it is not in default because it made every effort to make its July coupon payment on restructured bonds. The government deposited the $539 million with an intermediary bank but payout was blocked by a U.S. federal court.
The case has become a rallying cry for President Cristina Fernandez, who characterizes the funds as "vultures" out to wreck Argentina's finances in their pursuit of astronomical profits.
Her tough position is popular on the streets of Buenos Aires but has exasperated the U.S. judge who is hearing the case and has ordered Argentina to settle with the funds. Continuación...