MercoPress. South Atlantic News Agency
China/Argentina swap disagreements to be addressed by courts in London and Paris
Xi and Cristina celebrate, but any differences on the swap will not be decided by Argentine or Chinese courts Argentina's current confrontation in New York with Judge Thomas Griesa and the holdout speculative funds brings up the issue of having resigned the sovereignty of Argentine courts at the time of negotiating or restructuring foreign debt.
This situation has had ample coverage both from the Argentine government and opposition as to 'who is more patriotic', in these circumstances, particularly since Argentina in the current litigation tried to remove jurisdiction from New York to Buenos Aires to pay the re-structured bondholders and thus avoid complying with the holdouts.
Judge Griesa warned strongly about this move and the possibility of ignoring his court's rulings.
But all the situation is quite ironic given the recent visit of Chinese president Xi Jinping to Argentina with the 11bn dollars swap system offered and to be implemented by the central banks.
In effect under the terms of the swap agreement any disagreements will be dealt with, in first instance, by the courts in London.
And if this does not work, then Argentina and China will accept the authority of the Paris-based International Chamber of Commerce.
The problem, even with the Chinese “strategically integrated partners”, seems to be one of international practice or perhaps the lack of credibility of Argentina’s judiciary. And not necessarily the subservient attitudes form any side of the political divide in Argentina.
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Read all commentsSo China is using the British legal system to guarantee their loans to Argentina because they don't trust the Argentines to abide by the agreement.
Jul 22nd, 2014 - 06:50 am 0And I thought that China was Argentina's new 'bestest' friend in the whole world. Friends they might be portraying themselves as, but they're not stupid enough to believe a word Argentina says.
This must rub all those Malvinista's up the wrong way. Argentina being held accountable in British courts.
Of course, being Argentines, the Chinese don't believe that they'd agree to use British courts (being as they are completely impartial in the matter), so they've added in a second layer of security.
So, the ONLY way Argentina can get money off anyone is by giving away it's sovereign 'rights' in money matters.
I wonder how Tobias's fake Chinese persona will be affected by this?
Brilliant, with the flick of a switch UK Courts will now be able to turn off Tinka's power in deepest Patagonia. Dreams of a winter bath with his favourite goat won't be quite as sweet for the smelly old git.
Jul 22nd, 2014 - 07:40 am 0Pity that UK can't stay away from this.
Jul 22nd, 2014 - 09:08 am 0Commenting for this story is now closed.
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