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Argentina ordered to pay US$337 million for manipulating Indec data under Kirchner administration


Mar 25, 2024

The Government of Javier Milei will need to pay approximately US$337 million to appeal an adverse ruling related to the manipulation of Indec data during the Kirchner era from 2007 to 2015. This bail will be paid in a court in Great Britain as part of the trial against the country for the manipulation of economic growth data during Kirchnerism, with a total sentence of about US$1.5 billion, as reported by Bloomberg and expert Sebastián Maril.

The plaintiffs are represented by the law firm Quinn Emanuel Urquhart & Sullivan, which includes Dennis Hranitzky, the lawyer who seized the Frigate Libertad in 2012. According to Maril, Argentina has announced the creation of the RofA Special Trust 2024 in New York to provide a guarantee of nearly US$330 million as a condition for appealing the PBI Coupon ruling in London.

Through Decree 277/2024 published in the Official Gazette, the Executive Branch approved the model trust agreement called “RofA Special Trust 2024,” the Standby Letter of Credit to be granted in favor of the Trustee of the Negotiable Securities, and the Letter of Credit Facility Agreement model. The London Court of Appeal has mandated that the State must pay the bail before April 5 in a trust account to continue with the trial involving the calculation of debt bonds known as “PBI coupons.”

The decree also authorizes the extension of jurisdiction in favor of state and federal courts in New York, along with a waiver of opposing the defense of sovereign immunity in contracts related to the decree. Immunity is not waived for the execution of sentences arising from the extension of jurisdiction clauses concerning specified assets, including those belonging to the Central Bank of Argentina, public domain properties, and assets under military control.

Overall, the Government of Javier Milei faces significant financial obligations and legal challenges as it navigates the implications of the manipulation of economic data during the Kirchner era and works towards appealing the adverse ruling in court.

By editor

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