Opposition to file writ against public sector debt swap - News Summed Up

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Opposition to file writ against public sector debt swap


Patricia Bullrich, head of right-wing opposition party PRO, has instructed PRO deputies to file a protective action against the decrees requiring public sector bondholders to shed debt in dollars and switch it to pesos. The writ describes the debt swap as “objectively and factually ruinous”, calling it “new borrowing disguised as a swap” on the grounds that the decrees establishing the swap do not specify whether the foreign law bonds that enter the treasury will be reabsorbed. On that basis, the writ argues that under Argentine law debt cannot be issued by decree and requires the prior approval of congress. The blue-chip swap rate, also known as contado con liqui or CCL, is used in the financial world as a way to get dollars. According to the writ, the debt swap puts state pensions at risk by failing to safeguard the funding of the Sustainability Guarantee Fund (FGS), a sovereign investment fund that is part of Argentina’s social security system.


Source: Bueno Aires Herald March 28, 2023 09:47 UTC



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