#AceFinanceNews – UNITED STATES – June 16 – The U.S. Supreme Court declined on Monday to hear Argentina’s appeal over its battle with hedge funds that refused to take part in its debt restructuring’s, a move that risks send Latin America’s No. 3 economy into a fresh sovereign default.
The high court left intact lower court rulings that ordered Argentina to pay $1.33 billion to the so-called holdouts who refused 2005 and 2010 debt swaps in the wake of its catastrophic 2001-02 default on $100 billion.
(Argentina has previously refused to pay up)
If it sticks to that position, U.S. authorities could prevent full payment to creditors holding restructured bonds even though the country is able and willing to pay them.
This could result in a default as early as June 30, when payments are due on discount bonds governed by New York.
Argentina’s country risk, as measured by the J.P. Morgan EMBI+ Index, rose nearly 10 basis points on the news, while Argentine stocks were down nearly 4 percent.
Investors had not expected the adverse decision from the court.
#AceFinanceNews – FINLAND (Helsinki) – June 16 – As UK prime minister David Cameron’s Conservatives set about reforming the anti-federalist European Conservative and Reformist (ECR) group in the European Parliament, the spotlight has fallen on their new allies.
In a bid to obtain the required 25 MEPs from seven member states, the group is enlarging to take on two deputies from Finland’s populist Finns party.
"The acceptance of the Finns, along with the Danish People’s Party, into the ECR has been primarily seen as an important strategic move by the British Conservatives to isolate Ukip in the European Parliament," says Jemima Repo, political scientist at the university of Helsinki.
"It means a stronger eurosceptic agenda for the ECR and the Conservatives, and it groups the Finns with a more traditional and respectable right, distancing them from a more far-right and xenophobic profile," she adds.
Of the two Finns’ deputies Sampo Terho and Jussi Halla-aho, it is the latter who is the more controversial.
The original political home of Halla-aho is Suomen Sisu, an organisation that has been instrumental in popularising anti-immigration themes in Finland and has throughout its history displayed strong connections to Finnish neo-fascist intelligentsia.