Javier Milei’s Government Faces Financial Obligations and Legal Challenges in Kirchner Era Misdeeds Case

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

Javier Milei’s Government Faces Financial Obligations and Legal Challenges in Kirchner Era Misdeeds Case

The Government of Javier Milei is facing significant financial obligations and legal challenges after being ordered to pay approximately US$337 million in bail 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.

To comply with this requirement, Decree 277/2024 was published in the Official Gazette, authorizing the model trust agreement called “RofA Special Trust 2024,” granting a Standby Letter of Credit to be given in favor of the Trustee of Negotiable Securities, and agreeing on a Letter of Credit Facility Agreement model. The London Court of Appeal has mandated that the State must pay this bail before April 5 into a trust account if they want to continue with their trial involving calculating debt bonds known as “PBI coupons.”

This decree also authorizes state and federal courts in New York, along with a waiver of opposing defense arguments related to sovereign immunity for contracts resulting from this decree. Immunity is not waived for executing sentences arising from extending jurisdiction clauses concerning specified assets such as those belonging to Central Bank Argentina, public domain properties and assets under military control.

In summary, Javier Milei’s government faces significant financial obligations and legal challenges as they navigate through Kirchner era misdeeds and seek an appeal for an unfavorable court decision related to economic data manipulation.

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