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OAS supports Argentina on hedge funds issue; Timerman regrets “US attitude”

Friday, July 4th 2014 - 06:00 UTC
Full article 38 comments
Timerman said he appreciated solidarity and commitment from the region but ”I do not quite understand the US’s position” Timerman said he appreciated solidarity and commitment from the region but ”I do not quite understand the US’s position”
“We are hopeful that Argentina will find a solution to this matter”, said US Assistant Secretary Roberta Jacobson “We are hopeful that Argentina will find a solution to this matter”, said US Assistant Secretary Roberta Jacobson

The Organization of American States (OAS) voted on Thursday to support Argentina’s position against holdout investors, as well as expressing concern over what the entity called “the behavior of speculative agents that affect global financial stability.”

According to the document signed, OAS backed up Argentina in order to let the South American country “fulfill its obligations, pay its debt and honor its financial commitments through a just and equal agreement with the totality of bondholders.”

Canada and the United States abstained from voting and were criticized by Foreign Minister Héctor Timerman.

“I appreciate the solidarity and commitment from Latin American and Caribbean countries. I do not quite understand the US’s position,” he said during a press conference after the meeting.

“I truly regret that two countries didn’t sign this well balanced document. The only thing it asks for is negotiations to be just and to allow us to pay.”

“For once we discuss a serious matter in OAS that could leave Argentina in a complicated situation and the US does not accompany the region’s will and consensus,” Timerman concluded, while saying this does not mean the relationship between these countries and Argentina is affected.

Meanwhile, Economy Minister Axel Kicillof praised OAS's support and highlighted this case impacts “the world financial architecture”.

Speaking for the US, Roberta Jacobson, Assistant secretary of State for Western Hemisphere affairs, said it was in Argentina's interest to normalize relations with all creditors and in the interests of the country and the international community that Argentina fully participate in the international financial system.

“Both sides of this dispute have said at different times they would be willing to negotiate, which we believe offers the parties the best path to a resolution,” she said.

“We are hopeful that Argentina will find a solution to this matter that resolves its issues with the bondholders and allows it to return to inclusive growth”.

Follows RC.28/DEC. 1/14. Declaration in support for the position of Argentina on its sovereign debt restructuring. (1)
(Adopted at the plenary session, held on July 3, 2014 and pending revision by the Style Committee)

THE TWENTY-EIGHTH MEETING OF CONSULTATION OF MINISTERS OF FOREIGN AFFAIRS,

CONSIDERING:

The efforts being made by the Argentine Republic to honor the acquired commitments to more than 92% of its creditors since the restructuring of its sovereign debt in 2005 and 2010;

The manifest will of the Argentine Government to negotiate in good faith and to honor its commitments;

That it is necessary to have tools that facilitate agreements reasonable and definitive between creditors and sovereign debtors allowing to address problems of debt sustainability orderly; and

That democracy and economic and social development are interdependent and mutually reinforcing,

DECLARES:

1. Its support to Argentine Republic so that it can continue to meet its obligations, pay its debt, honor its financial commitments and through dialogue arrive at a fair, equitable and legal arrangement with 100% of its creditors.

2. That is essential for the stability and predictability of the international financial architecture to ensure that agreements reached between debtors and creditors in the context of sovereign debt-restructuring processes are respected by allowing that payment flows are distributed to cooperative creditors in accordance with the agreement reached with them in the process of consensual readjusting of the debt.

3 Its full support to achieving a solution that seeks to facilitate the broad Argentine sovereign debt-process.

 - (1) The United States cannot support this declaration, and notes that the issue remains in the judicial process in the United States.
 

Top Comments

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  • Redrow

    Surely not another case of Argentina going round demanding negotiations as a way of avoiding having to actually negotiate with those it has nothing to offer?

    Jul 04th, 2014 - 06:26 am 0
  • golfcronie

    @1
    Surely the first paragraph is saying what the Court is saying, insofar as “ through dialogue and arrive at a fair and equitable and legal arrangement with 100% of its creditors.” They ( Argies ) have not done so yet.
    Anyway Tinpotman it is not the US attitude is the law of the USA. You only have to look at all the judgements against the major banks recently to see that. BNP Paribas a French bank has agrred to pay a paltry US$ 9 billion as a fine. Comon Argies just pay up, and shut up.

    Jul 04th, 2014 - 06:51 am 0
  • Stoker

    The open letter to the OAS delegates from Ambassadors Eizenstat & Soderburg summarizes the US position perfectly.
    https://docs.google.com/viewer?url=http://www.atfa.org/wp-content/uploads/2014/07/OAS-Letter_7-1-31.pdf&chrome=true

    Jul 04th, 2014 - 06:55 am 0
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