MercoPress. South Atlantic News Agency

US calls on Argentina to honor repudiated sovereign debt

The American Task Force Argentina (ATFA) applauded Wednesday the US Government for formally stating for the first time that the government of Argentina must honor the repudiated sovereign debts owed to international creditors, “including over 20 billion US dollars in default claims by international bondholders” and that these lingering issues “adversely impact Argentina's investment climate”.

ATFA has vigorously urged US officials to make the issue of Argentina honoring its sovereign debt obligations a priority matter in the US-Argentine bilateral dialogue. ATFA leadership and members have recently conducted numerous meetings at the US Departments of State and Treasury and with other senior Executive Branch officials. They also have briefed Members of Congress and numerous associations on the adverse effects of Argentina's debt policies on American bondholders, investors, taxpayers and businesses. The US Department of State's newly-updated, official Argentina "Background Notes" profile, for the first time, includes explicit language on the need for the Argentine government to resolve its outstanding debt issues with both its private and official creditors. Acknowledging the importance of foreign direct investment for Argentina's economic growth, the report also warns of the increasing damage to the Argentine economy from its government's failure to resolve its outstanding debt issues: "Continuing Argentine arrears to international creditors (including over 20 billion US dollars in default claims by international bondholders and over 6 billion owed to official creditors, including the US Government) and a large number of arbitration claims filed by foreign companies are legacies of the 2001-02 economic crisis that remain to be resolved and adversely impact Argentina's investment climate ... "