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Monday Memo: Supreme Court and Argentina – Michoacán Violence – Pope Names Cardinals – Nicaragua Canal – Venezuelan Bolivars

Likely top stories this week: the U.S. Supreme Court will look at Argentina’s debt case; Michoacán’s government asks for help; Pope Francis names Haitian, Brazilian, Nicaraguan and Chilean cardinals; President Ortega says that Nicaragua Canal construction will begin this year; Air Europa rejects Venezuelan customers’ bolivars.

Argentina’s Bondholder Battle Goes to U.S. Supreme Court: The U.S. Supreme Court agreed on Friday to review a case that pitted hedge funds NML Capital and Aurelius against the Argentine government in the aftermath of the country’s 2002 debt default. Though most of the debt has been written off since then, the holdout bondholders have demanded repayment in full, which amounts to about $1.3 billion dollars, plus interest. Argentina has refused to pay back the debt, and while U.S. courts have ruled against the country, a U.S. appeals court said last August that Argentina will not be required to pay back the money until the Supreme Court rules on the matter.

Michoacán Asks for Help From Federal Government to Contain Violence: Governor Fausto Vallejo of the Mexican state of Michoacán confirmed that he asked for help from the federal government on January 10 to combat a recent spate of violence in the crime-plagued state. In Michoacán, vigilante “self-defense” vigilante groups have occupied a number of cities in an effort to battle the Knights Templar drug cartel for control of the state. On Friday, a number of masked gunmen looted and set fire to stores and the main municipal building of the town of Apatzingan, causing fearful residents to stay home. Local Congressman Silvano Aureoles called on the federal government to take control of the situation in a statement published on Sunday.

Pope Francis Names Cardinals, Including Four from the Americas: Pope Francis named 19 new cardinals this Sunday, including Chibly Langlois of Haiti, Orani João Tempesta of Brazil, Leopoldo José Brenes Solorzano of Nicaragua, and Ricardo Ezzati Andrello of Chile. A spokesperson for the Vatican said that the new appointees from poor countries such as Haiti and Burkina Faso reflect the pope’s commitment to helping the impoverished. The new cardinals will be installed in a ceremony on February 22 in the Vatican City.

Nicaragua Canal Construction on Track, Says Ortega: Nicaraguan President Daniel Ortega announced on Saturday that the construction of the country’s $30 billion inter-oceanic canal would begin as planned in December 2014. Last week, Manuel Coronel Kautz, president of the Nicaragua canal authority, said that the canal’s construction would likely be delayed until 2015. The Nicaraguan government granted the Hong Kong-based HKND Group a 50-year concession to build and manage the new canal, which will also include an oil pipeline, overland route, two deepwater ports, and two airports and duty-free zones.

Airline Refuses Bolivars from Venezuelan Customers: Spanish airline Air Europa announced on Friday an “indefinite” suspension of all ticket sales in bolivars, making it increasingly difficult for Venezuelans to purchase flights in the local currency. The airline said that it is owed more than $160 million because Venezuela’s country’s foreign exchange agency has not exchanged bolivars for U.S. dollars in some time. Other airlines may follow suit, cutting off access to flights for many Venezuelans. While the Venezuelan government says that one U.S. dollar equals 6.3 bolivars, the black market exchange rate is 11 times higher.

Any opinions expressed in this piece do not necessarily reflect those of Americas Quarterly or its publishers.
Tags: Pope Francis, Nicaragua Canal, Argentina Debt Default

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