Facing Financial Obligations and Legal Challenges: The Government of Javier Milei Navigates through Argentina’s Kirchner Era

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

The government of Javier Milei is facing significant financial obligations and legal challenges following an adverse ruling related to the manipulation of Indec data during the Kirchner era from 2007 to 2015. As reported by Bloomberg and expert Sebastián Maril, the bail amount for this trial in Great Britain is approximately US$337 million, with a total sentence of about US$1.5 billion.

The plaintiffs are represented by Quinn Emanuel Urquhart & Sullivan, who have also been involved in other notable cases such as the seizure of 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.

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

However, this decree also authorizes an extension of jurisdiction in favor of state and federal courts in New York, along with a waiver of opposing sovereign immunity in contracts related to this decree. Immunity is not waived for executing sentences arising from extending jurisdiction clauses concerning specified assets, including those belonging to central banks, public domain properties and assets under military control.

Overall, it appears that Javier Milei’s government faces significant challenges as they navigate through legal implications surrounding economic data manipulation during Kirchnerism era while working towards appeasing an adverse court ruling related to it.

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