Upcoming Events

International | Miscellaneous

no events match your query!

User Preferences

  • Language - en | ga
  • text size >>
  • make this your indymedia front page make this your indymedia front page

Blog Feeds

forward

Dublin Opinion
Life should be full of strangeness, like a rich painting

offsite link THE WORLD COULD SORT OUT EBOLA FOR THE PRICE OF ONE BONO 23:07 Tue Nov 18, 2014

offsite link WELL THAT?S IRISH WATER FINALLY SORTED OUT 23:04 Tue Nov 18, 2014

offsite link 1916 in 2016 08:47 Mon Nov 17, 2014

offsite link IRELAND, POLAND AND FRACKING 07:56 Mon Nov 17, 2014

offsite link WHEN IT COMES TO THE BANKS, LEAVE PLOT AT THE DOOR 22:24 Fri Nov 14, 2014

Dublin Opinion >>

Irish Left Review
Joined up thinking for the Irish Left

offsite link We Won?t Back Down: Statement from Communities Against Water Charges Sun Nov 23, 2014 17:17 | Irish Left Review

offsite link Guaranteeing Recidivism Thu Nov 20, 2014 17:07 | Donagh Brennan

offsite link The Blue Moon Women Thu Nov 20, 2014 09:55 | Anne Irwin

offsite link The Road To Ireland & The Water Thief Wed Nov 19, 2014 22:29 | Owen Gallagher

offsite link The Crisis of Irish Democracy Wed Nov 19, 2014 12:15 | Bryan Wall

Irish Left Review >>

NAMA Wine Lake

offsite link Farewell from NWL Sun May 19, 2013 14:00 | namawinelake

offsite link Happy 70th Birthday, Michael Sun May 19, 2013 14:00 | namawinelake

offsite link Of the Week? Sat May 18, 2013 00:02 | namawinelake

offsite link Noonan denies IBRC legal fees loan approval to Paddy McKillen was in breach of E... Fri May 17, 2013 14:23 | namawinelake

offsite link Gayle Killilea Dunne asks to be added as notice party in Sean Dunne?s bankruptcy Fri May 17, 2013 12:30 | namawinelake

NAMA Wine Lake >>

Argentina Responds to Supreme Court with Debt Swap Plan

category international | miscellaneous | news report author Wednesday June 18, 2014 20:19author by Erin Kelso - Jubilee USAauthor email outreach at jubileeusa dot org Report this post to the editors

Global Consequences of Court Ruling Remain Intact

In reaction to an adverse Supreme Court ruling against Argentina, President Cristina Fernández de Kirchner announced that Argentina would offer new bonds to its creditors governed under Argentine law. The proposed debt swap would involve the 92% of the country's creditors that agreed to restructure in the wake of the country's 2001 default. While the debt swap proposes an alternative for the South American country to avoid paying hold-outs, it fails to reverse the global implications on debt markets, debt restructuring and financial stability.

In reaction to an adverse Supreme Court ruling against Argentina, President Cristina Fernández de Kirchner announced that Argentina would offer new bonds to its creditors governed under Argentine law. The proposed debt swap would involve the 92% of the country's creditors that agreed to restructure in the wake of the country's 2001 default. While the debt swap proposes an alternative for the South American country to avoid paying hold-outs, it fails to reverse the global implications on debt markets, debt restructuring and financial stability.

"Argentina may have a way to avoid paying the hedge funds but it won't change how the court precedent equips predatory funds with a powerful ruling to force the poorest countries into submission," stated Eric LeCompte, Executive Director of the religious anti-poverty organization Jubilee USA. "The impact of this ruling stretches far beyond Argentina."

The hold-out creditors include hedge funds popularly referred to as "vulture funds" because they buy debt cheaply when a country is in financial distress. Then the predatory funds sue them for full payment when the country experiences recovery or has attained new assets earmarked for social investment. The International Monetary Fund, World Bank, United Nations and US government have all expressed concern about the impact of a ruling in favor of these funds. They have noted that the precedent set by this case could make it more difficult for developing countries to receive debt relief and lead to greater financial instability. Jubilee USA made these arguments in a brief on behalf of Argentina before the high court, representing nearly 80 faith communities and national religious and development organizations.
"Essentially, the ruling legitimizes this extreme behavior and makes it more profitable across the globe," said LeCompte. "Poor people and legitimate investors still lose the most with this ruling."

Read a history and timeline of the case: http://www.jubileeusa.org/truth-about-debt/vulturefunds....html .

Read Jubilee's USA's filing urging the Supreme Court to take case: http://jubileeusa.org/fileadmin/13-990__-991_Amici_Brie...4.pdf .

Jubilee USA Network is an alliance of more than 75 US organizations, 400 faith communities and 50 Jubilee global partners. Jubilee's mission is to build an economy that serves, protects and promotes participation of the most vulnerable. Jubilee USA has won critical global financial reforms and more than $130 billion in debt relief to benefit the world's poorest people. www.jubileeusa.org

© 2001-2014 Independent Media Centre Ireland. Unless otherwise stated by the author, all content is free for non-commercial reuse, reprint, and rebroadcast, on the net and elsewhere. Opinions are those of the contributors and are not necessarily endorsed by Independent Media Centre Ireland. Disclaimer | Privacy