UN Human Rights Council backs Argentina on US debt row
Source: BBC News
UN Human Rights Council backs Argentina on US debt row
26 September 2014 Last updated at 18:15 ET
The United Nations Human Rights Council has passed a resolution in Geneva condemning a group of American hedge funds that took Argentina to court.
The investors are demanding payments worth more than $1.3bn (£766m) dollars on government bonds they hold.
Argentina defaulted on its debts in July after refusing to comply with a US court ruling in favour of the funds.
It is searching for ways of meeting its obligations to its other creditors without paying the hedge funds in full.
~snip~
It was approved by 33 votes to five, with nine countries abstaining.
The United States, Britain, Germany, Japan and the Czech Republic voted against.
Read more: http://www.bbc.com/news/world-latin-america-29387872
NaturalHigh
(12,778 posts)Why would anyone keep loaning them money?
Judi Lynn
(160,428 posts)US Council of Foreign Affairs supports Argentina, blasts Judge Griesa
Thursday, June 26th 2014 - 05:12 UTC
US Council of Foreign Affairs supports Argentina, blasts Judge Griesa
The Council on Foreign Relations, one of the most influential private organizations in US Foreign Policy, questioned the US Supreme Court for rejecting Argentinas appeal in its legal dispute with the so-called vulture funds, saying the ruling will diminish national sovereignty and upend international finance.
In a highly critical article published in its renowned Foreign Affairs magazine and signed by Felix Salmon, the Council bashes both the US Supreme Courts decision and Judge Thomas Griesas previous ruling, describing them as dangerous fundamentalism.
The consequences are certain to be dreadful for Argentina. More broadly, the ruling will make it more difficult for countries to free themselves from the burden of over-indebtedness. It will be very bad for international capital markets. Oh -- and it will also diminish national sovereignty, it reads.
Salmon focuses on the effects of the rulings on international finances, saying the Supreme Courts decision leaves open the questions of sovereign immunity, the future of sovereign debt restructuring, and the future of New York as a financial center.
In tune with Argentinas stance, the article states that if a country does default on debts, then it needs some way to cure that default Because countries cant declare bankruptcy, exchange offers are the next best thing. But for those to work, a debtor country needs to be able to pay the exchange bondholders without paying the holdouts. Otherwise, no one would ever participate in an exchange, and no country could ever restructure its debts.
More:
http://en.mercopress.com/2014/06/26/us-council-of-foreign-affairs-supports-argentina-blasts-judge-griesa