Cristina finds pickets and marches

Holdouts received Argentine presidential couple with a paid-for announcement published in the newspaper "The Wall Street Journal".

New York - It was inevitable that holdouts' pressure would leak in this tour of Argentine presidential couple around this city. A colourful demonstration, with 'extras' dressed like teachers with violet tunics in the heart of Manhattan, asked yesterday a solution to defaulted debt. "Argentina, win respect and pay your debts", "Stop Argentina's Culture of Corruption" and "Cristina, talk with holdouts" were some of the signs held up yesterday at noon. The 'production' took place on the corner of Park Avenue and 48th Street, one block and a half away from Waldorf Astoria. Of course, this coincided with Cristina's presence in that hotel, where the lunch with investors organized by the Council of the Americas was carried out. "This was the closest that the police allowed us to express ourselves. It's been over a week that we've been asking for permission," said one of the organizers.

Demonstrators' portrayal as teachers was not chosen at random. Several US pension funds grouping teachers had invested in Argentine bonds before suspension of payments. This situation generated serious damage, which persists today since many of these funds refused to accept government's proposed payoff. It is estimated that, out of the more than $20 billions not entering swap, around $3 billions were in American hands.

All this was prepared by American Task Force Argentina (ATFA), an entity grouping US investors holding bonds not entering swap. Former US Commerce Deputy Secretary, Robert Shapiro, and the ambassador Nancy Soderberg are the visible faces of the organization.

Such group published yesterday a paid-for announcement in the newspaper "Wall Street Journal." The headline says everything: "The culture of corruption is costing Americans billions." "The presidency of Néstor Kirchner," it continued, "is reaching its end, leaving behind a legacy of mismanagement and corruption." And it stresses that the potential new president has the opportunity to "clean up the mess." Also, it makes reference to the recent episode of the $800,000 suitcase the Venezuelan Antonini Wilson tried to sneak into the country, showing lack of openness of current administration.

While delivering a speech before investors, Cristina referred to such matter tangentially and left little room for favourable prospects: "This administration has carried out restructuring and we've moved from a 160-per cent debt with respect to GDP to just 60 per cent." She avoided mentioning, of course, that such estimate did not include most bonds left outside restructuring.

In fact, there are increasingly more people in Wall Street believing Argentine First Lady will give a new chance to holdouts. Yet, it will all depend on Argentina negotiating debt with Paris Club.

Shapiro, representing US creditors, has already got in touch with main creditor countries. He has asked them to demand a solution to Argentine government, as a previous condition to negotiate new terms and rates.