MercoPress. South Atlantic News Agency

CFK says BRICS support Argentina in the holdouts dispute, but where’s the document?

Dilma Rousseff will be taking a proposal on sovereign debt restructuring to the G20 summit in Australia, according to the Argentine president

President Cristina Fernandez assured that Argentina received the support from the group of BRICS countries (Brazil, Russia, India, China and South Africa) in its struggle against the holdout speculative funds, during the two summits held in Brazil, in Fortaleza and Brasilia.

“Argentina was gratified by an ample support from BRICS countries regarding the vulture funds and their attempt to throw out the debt restructuring which so laboriously Argentina achieved in 2005 and 2010”, said CFK on Wednesday in her speech to the BRICS and UNASUR Union of South American Nations, summit in Brasilia.

However after addressing her fellow leaders Cristina Fernandez approached the media and told them “I forgot to say something very important. Dilma Rousseff at the end of the meeting made a proposal she will be taking to the G20 on the restructuring of sovereign debt, because it’s not an issue for Argentina, it can impact all countries; and in effect Brazil had a similar situation during 20 years, so that is why she proposed taking the issue to be discussed at the next G20 in Australia”.

However the only mention to the issue came from Colombian president Juan Manuel Santos who after listening to Cristina Fernandez said that “the Argentine case is irrational and unbelievable; all countries expressed support for Argentina and the need for a practical solution”.

Likewise the issue was not mentioned in the official document from the Brasilia summit on Wednesday or from the BRICS meeting in Fortaleza on Tuesday.

“The only person who spoke about the vulture funds was the Argentine president, none of the other leaders touched on the issue and there was no official joint statement from the two blocks”, said the Brazilian foreign ministry spokesperson.

So far Argentina has received explicit support from the G77 plus China, the OAS, Mercosur and other international organizations, but no BRICS position.

“The issue was not addressed, there won’t be any statement from the blocks and there is no joint document. We had the speeches from the presidents but that issue was not on the table, the main issue was economic and social development”, said a high ranking member from Dilma Rousseff’s administration.

Furthermore according to the Buenos Aires press the government of Cristina Fernandez was hoping to return with the promise of a 5bn dollars loan to replenish depleted central bank international reserves but this did not occur, no BRICS member made such an offer and the development bank will begin operations in 2016, and giving priority to its members.

“There was no mention of loans because the new development bank will be operating by 2016. In Fortaleza it was agreed to create the bank but implementation and details needs time, as well as authorities, structure, it’s all time”, said the Itamaraty spokesperson.

“Not a word about loans or financing to third countries, nor access to the contingency fund for countries that do not belong to BRICS”, confirmed the spokesperson.

“In any case the development bank will only finance in a first stage BRICS members projects and later on the possibility of aiding third countries”. President Rousseff on Tuesday anticipated that loans will be awarded following strict conditions including guarantee support, “as any normal bank”.