10 April 2007

A fresh breeze for Argentina´s Bondholders

After two years, Argentina´s Bondholders who rejected the trickiest debt offering on earth, come out of their hibernation. Our big boys of the distressed debt segment, glittering names like Elliott or Greylock Capital, have decided to hire professional lobbyists and establish the long overdue special interest group to communicate the public problem: ATFA

How long have I waited for that. How many times did I stay alone on the floor of a ministry or a parlamentarian lobby? How often had I to explain, that many bondholders are concerned and an awful lot of bucks is lacking not only in the pockets of private investors, but also in the balance sheets of enterprises and foundations? Billions, lost for the economies of whole Nations like the US, Japan, Germany or Italy. Gone to the Argentine Government, who has made a big, but dirty deal.

Now, $20billions are still outstanding. How I mentioned in the Journal two years ago, too much to sweep under the carpet. The open debt remains. Also bad memories remain. The arrogance of the IMF which deemed itself as the one and only preferred creditor. The lack of interest in the US-Treasury. The lack of understanding the problem worldwide. The refusal of President Kirchner to visit me in my village....and not to forget: Dirty "Bondholder Representations" which raked in millions from unsophisticated savers with too much trust in institutions.

But the sentiment is improving. The collaboration with professional lobbyists is great. I said it from the outset: The problem can not resolved by law rather by politics and communication. The lawsuits were necessary to test this subsystem. But the situation as a whole could only become better for all participiants, if they talked to each other and listened to their counterparts.

Hence, I call the Holdouts the Heroes of the financial world. The holdout resistance ist the only leverage, investors have. I am glad and proud of being one of them, albeit with a reduced nominal value. Nobody reckoned with this long term fight, besides fortune tellers like Mohamed El-Erian whom I didn´t believe during my wacky fall season 2001. Then I believed in authorities like Horst Köhler, who reassured, that his IMF-package of further 8 billions would strenghten confidence and bring the Nation on the right track. Köhler is deemed as honorable man in Germany´s leading media, but he has this Argentine skeleton in his cupboard. The truth in the IMF-report has never led to consequences. Hopefully some wind of change will bring justice and fairness to the weaker part of this so called financial community.

Keine Kommentare: