After vulture fund request Aurelius Capital Master for a group of former Argentine officials to testify under oath in a court in New York in the case of the alleged manipulation of GDP data in the government of Cristina Kirchner, Judge Loretta Preska, who is handling the case, agreed to the request for an Argentine court to summon the former Minister of Economy and current Governor of the Province of Buenos Aires, Axel Kicillof, and 9 other former officials to testify under oath and to account for why the formula for calculating GDP growth in 2013 was changedwhich prevented a clause from being triggered and the Government having to pay the bondholders.
The trial, which is taking place in New York, is for a total of USD 1.12 billion while the litigation in the London court is for around USD 700 million.
“Judge Loretta Preska agrees to the request of the Aurelius fund and asks an Argentine court to order Governor Kicillof and nine other former officials to appear to testify virtually in the GDP Coupon and Indec data case”, said debt expert Sebastián Maril.
As confirmed to Infobae sources close to the current governor of the province of Buenos Aires, the official “Surely he will testify.”
Maril assured that if the Argentine courts do not accept this request from the plaintiffs, They are going to ask the judge to declare them in contempt, a situation that Argentina has already gone through in its years of default and that will surely be a bad precedent due to the other cases that the judge has on Argentina, such as that of YPF.
It should be remembered that Aurelius Capital Master requested assistance from the Hague Court so that, through an Argentine court, it orders the officials mentioned on the list to testify under oath in a New York court in the PBI Coupon case and the alleged manipulation of Indec.
In the list of the letter presented last night by the bondholders to Preska are the former Ministers of Economy Hernan Lorenzino, Axel Kicillof -governor of the province of Buenos Aires-; former finance secretary Sergio Chodos, current Argentine representative before the International Monetary Fund (IMF); former deputy minister Emmanuel Alvarez Agis; y Juan Cuatrommoformer undersecretary of economic programming and current president of Banco Provincia.
The trial, which takes place in New York, is for a total of USD 1.12 billion while the litigation in the London court is for around USD 700 million.
Also, to the former INDEC directors during the maneuvers, which are also investigated by the Argentine federal justice, Norberto Itzcovich y Ferdinand Hillin addition to other officials of the Ministry of Economy during those years, such as Francisco Eggers, Federico Thea, Facundo Proietti, Luis Briones Rouco, Claudio Din, Ariel Abelar and others.
At the end of 2021, the New York federal court of Loretta Preska – who took charge of the cases of the late Thomas Griesa – ruled that Argentina should reveal the methodology used by Indec to measure economic activity in 2013, during the second term. by Cristina Fernandez de Kirchner.
For his part, Maril said that the trial is in a process of Discovery, which is the instance of presentation of evidence and arguments. In this sense, he said that “lThe funds undertook to deliver privileged information on who the holders of these bonds are” so that they can also contribute information.
“Auerelius has already attempted to have this list of officials virtually testify under oath about what they knew. Not about the manipulation of the Indec but what were the reasons why Kicillof decided to change the formula to calculate the growth of the GDP in 2013″, detailed the debt expert.
Meanwhile, the bondholders pointed out that under the Hague Convention, the United States courts can request the competent authority of another Contracting State, by means of a letter rogatory, to obtain evidence, or to carry out some other judicial act.
Aurelius assured that Argentina did not make GDP coupon payments linked to the bonds issued in its debt restructurings of 2005 and 2010
The judicial decision is linked to the lawsuit initiated in the country -in the United States- by Aurelius Capital Management, due to the way in which Argentina calculated the GDP. Meanwhile, Aurelius will have to present to the court the documents that prove the purchase of Argentine titles issued in dollars, after that debt restructuring.
In a presentation made two years ago in a federal court in Manhattan, Aurelius assured that Argentina did not make GDP coupon payments linked to the bonds issued in its 2005 and 2010 debt restructurings.
According to the fund, the government of then-president Cristina Kirchner manipulated the 2013 GDP figures to avoid paying holders of the securities billions of dollars. For this reason, Aurelius questioned the statistics that Indec was preparing at that time.
According to the plaintiffs, the then Minister of Economy Axel Kicillof had announced that the 2013 GDP had grown 4.9%, but later pointed out that due to a review of accounts (base change from 1993 to 2004), the growth had been 2.9 percent .
In 2005, the trigger for the payment was a growth of 4% and the GDP grew 9%, while in the following seven years Argentina grew an average of 7%, with a trigger of 3.5%, the agency indicated. Bloomberg.
The coupon was always paid the following year for past growth. Meanwhile, in response to the lawsuit, Argentina affirmed that it made all the payments of those coupons, for a total of almost USD 10,000 million, for which it demanded that the US court dismiss Aurelius’ claim.