MercoPress. South Atlantic News Agency

Mercosur and Celac stand by Argentina in the hedge funds litigation

Mercosur heads of state expressed their ”most absolute rejection to the attitude of the holdouts

Mercosur and Celac country-members expressed support for Argentina and its ongoing litigation with the holdout hedge funds, particularly last week's decision from the US Supreme Court, (which refused to consider the case), and the financial consequences emerging from such a position.

 Mercosur heads of state expressed their “most absolute rejection to the attitude of the holdouts”, whose actions they claim, “are an obstacle for reaching definitive agreements between debtors and creditors and puts at risk the financial stability of countries”.

The release also acknowledges “Argentina's willingness to continue honoring its international financial commitments, as it has been doing systematically since the restructure of its debt in 2005 and 2010, when an agreement was reached with 92% of its creditors”.

Finally they express “solidarity and support for Argentina in its search for a solution that does not compromise its people's development and well being, in consonance with its national development policies”.

Likewise the Community of Latina American and Caribbean States, Celac, reiterated statements from the Havana II Summit, January 28/29 when it underlined that “it is necessary to have instruments that enable reasonable and definitive agreements between sovereign creditors and debtors, enabling to address problems of debt sustainability in an orderly way”.

“We consider indispensable for the stability and predictability of the international financial architecture, to guarantee that the accords reached between debtors and creditors in the framework of sovereign-debts restructuring processes are respected, allowing the flow of payments to be distributed among cooperative creditors as mutually agreed, in a process of debt consensual readjustment”, said the text delivered on Friday in Costa Rica.

Celac is an intergovernmental regional organization made up of 33 countries, excluding the US and Canada.