Argentina News: President Cristina Fernandez Meets with Billionaire George Soros to Talk About Economy
Argentine President Cristina Fernandez met with billionaire financier George Soros on Monday in New York and the two spoke about Argentina's languishing economy.
Soros, who is an Argentina bondholder, has a special interest in the country's fiscal health, according to a report from Reuters. He and Fernandez also spoke about a variety of other topics.
"President Kirchner and Mr. Soros discussed a range of topics, including the prospects for Argentina's economy, recent positive developments in Argentina's energy and hydrocarbons sector, and drug policy reform in Latin America," said Michael Vachon, a spokesman for Soros.
Fernandez is in the U.S. for a meeting of the United Nations General Assembly, as relations between her country and the U.S. have slipped over Argentina's recent default.
A Manhattan judge ordered Bank of New York Mellon Corp., Argentina's trustee, not to pass a $539 million coupon payment to bondholders until the Argentine government solved its conflict with creditors.
Those creditors, headed by NML Capital Ltd. and Aurelius Capital Management, declined terms of Argentina's restructuring after its 2002 default, seeking full payment on bonds. Argentina claims the New York judge overstepped his jurisdiction and has told BNY Mellon to pass on the money.
Now, Argentina has formally asked BNY Mellon to resign as the country's trustee, The Wall Street Journal reported. If BNY won't resign, Argentina says it is entitled to replace the bank.
Soros also has a conflict with BNY Mellon, and hedge fund Quantum Partners is one of four companies that has sued the bank, claiming that in obeying the judge's orders not to pass on payment BNY Mellon was protecting its own interests.
Soros has a 3.5 percent stake in Argentina's state-run energy firm YPF and the country often has flaunted his investment as a sign of investor confidence. In Soros, Fernandez is looking for support, as her country plans to continue its fight with the four creditors.
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