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

Thursday, July 17th 2014 - 07:20 UTC
Full article 72 comments
Dilma Rousseff will be taking a proposal on sovereign debt restructuring to the G20 summit in Australia, according to the Argentine president  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”.

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  • LEPRecon

    So BRICS have told CFK to feck off. No statements of support, no money, no help and no hope for Argentina.

    Not even an invitation to join the 'club'.

    Apparently BRICS aren't as gullible as the Argentine public, and they're certainly not stupid enough to loan Argentina money given Argentina's record on paying loans back, so CFK has resorted to form and basically is lying about what has happened.

    This can be added to her numerous other lies too...especially the one about the 'whole' world supporting Argentina when there is not ONE independent statement from ANY country that states that. Not even her precious C24 ever puts out official statements of support, and none of their 'recommendations' ever get past the 4th committee.

    So it looks more and more like Argentina is isolated, not only from reality, but from the world.

    Jul 17th, 2014 - 07:47 am 0
  • ElaineB

    So CFK's trip to Brazil was purely self-indulgent and to make her feel important by being allowed to visit the club that is BRICS. No loans from any country that 'supports' Argentina, not even their South American brothers. What a waste of time and money.

    Kicillof should have been in NYC showing good faith and negotiating but maybe he didn't have the $125,000 mediation fee he has already run up because he can't man up and speak directly to the hold-outs representatives.

    Jul 17th, 2014 - 07:52 am 0
  • Be serious

    Seems that Mrs Kirchner thinks a change in the rules will benefit Brazil as much as Argentina. Is Brazil about to default as well?

    Jul 17th, 2014 - 08:05 am 0
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