EM LATAM CREDIT: ARGENTINA: Govt Asks US Judge To Suspend Ruling, Pending Appeal

(From our Macro Analyst)

• Local media report that the government has asked US Judge Loretta Preska to suspend her ruling that gave the country 14 days to surrender its 51% stake in YPF shares, as part of a $16bn judgement, pending an appeal.

• The government said that complying with the order would cause “irreparable harm” to the country, according to La Nacion. The article also says that in addition to the suspension request, the government is already preparing an appeal to the ruling, which it suggests will be filed before the middle of the month.

• According to La Nacion, the government will argue that Preska exceeded her jurisdiction and that there is no material possibility of expropriating the shares. It also believes that the figure demanded in the lawsuit should be much lower, depending on the exchange rate used.

• Meanwhile, officials also “vehemently denied any contact with bondholders”, according to the article, or that negotiations will take place