May 22, 2024 5:51 pm
During the Kirchner era, Argentina must compensate US$337 million for manipulating Indec data.

Javier Milei’s government is facing a payment of about US$337 million in order to appeal an adverse ruling related to the manipulation of Indec data during the Kirchner era from 2007 to 2015. This payment will need to be made in a court in Great Britain as part of a trial against the country for falsifying economic growth data during Kirchnerism. The total amount of the sentence is approximately US$1.5 billion, as reported by Bloomberg and expert Sebastián Maril.

The plaintiffs in the case are represented by the law firm Quinn Emanuel Urquhart & Sullivan, with Dennis Hranitzky, the lawyer who seized the Frigate Libertad in 2012, among its partners. In response, the Argentine government 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 to appeal the ruling on PBI Coupons in London.

Recently, the Executive Branch approved a decree, 277/2024, published in the Official Gazette, which authorizes the creation of the RofA Special Trust 2024 and the issuance of a Standby Letter of Credit in favor of the Trustee of the Negotiable Securities. The London Court of Appeal has set a deadline of April 5 for the State to pay bail in trust account if they wish to continue with trial related to PBI Coupons.

The decree also grants extension of jurisdiction to state and federal courts in New York and waives defense of sovereign immunity in contracts related to this decree. However, it clarifies that Argentina does not waive immunity with respect to execution sentences that arise from extended jurisdiction clauses. Various assets are specified that are protected by sovereign immunity laws and cannot be used for payment purposes.

The case has sparked discussion and speculation online, with various sources providing insights and analysis on implications on ruling and government actions being taken

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