Javier Milei’s Government Faces Financial Turmoil as It Battles Adverse Ruling in UK Court: A Look at the $337 Million Bail Required for Appeal

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

The government of Javier Milei will need 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.

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

The decree also authorizes state and federal courts in New York, along with waiver opposing defense sovereign immunity contracts related to this decree. Immunity is not waived for execution sentences arising from extension jurisdiction clauses concerning specified assets such as those belonging to Central Bank Argentina, public domain properties and assets under military control. Overall, it poses significant financial obligations and legal challenges for Javier Milei’s government as they navigate through implications Kirchner era manipulation on Indec data and appeals against adverse ruling.

It’s important to note that while this article has been rewritten, it is based on information available up until March 19th , 2023 so any updates or changes should be checked against current sources.

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