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Argentina/holdouts, a clash between 'global financial power and political power'

Monday, August 11th 2014 - 01:54 UTC
Full article 108 comments
Supreme Court Judge Zaffaroni: the major scandal is not Griesa, a provincial judge, but the US Supreme Court Supreme Court Judge Zaffaroni: the major scandal is not Griesa, a provincial judge, but the US Supreme Court
“We say that the debt has to be paid but not at the expense of the people’s sacrifice”, said Chief Justice Lorenzetti. “We say that the debt has to be paid but not at the expense of the people’s sacrifice”, said Chief Justice Lorenzetti.

A Judge from Argentina's Supreme Court joined the ongoing battle in New York between the Argentine government and the holdouts and slashed out at the US Supreme Court for rejecting to take the case back in June. Eugenio Zaffaroni argued that the conflict must be addressed in the context of “attacks from the global financial power on political power”.

“It is the position of the US top tribunal in Argentina’s debt battle against so called ”vulture funds“ that represents a “scandal” rather than the behavior of New York Judge Thomas Griesa”, said member of the Supreme Court Zaffaroni.

“I think the mayor scandal is not Griesa, who is a provincial judge; the biggest scandal is the US Supreme Court saying ‘I don’t care about this country (Argentina), I don’t care about those million dollars',” Zaffaroni underlined analyzing Argentina's legal battle against holdout creditors suing it over its defaulted bonds.

Back in June, the US maximum court declined to hear Argentina’s appeal over its battle with hedge funds that refused to take part in its 2005 and 2010 debt restructurings. Swapped (2005 and 2010) bond holders total 93% while the holdouts represent 7%.

“Griesa is not even a federal judge but he takes measures trying to put a country on the rack, along with its economy, discussing its sovereignty.”

Last week, the government of President Cristina Fernández filed a legal case against the United States judiciary in the International Court of Justice in The Hague, which apparently the US administration has rejected, but for Zaffaroni “the move was worth trying.”

Zaffaroni who is an expert in human rights law, and is considered the Judge at the Argentine Supreme Court closest to the administration of President Cristina Fernández said that “Argentina’s conflict with 'vulture funds' must be addressed within the context of 'attacks' from the global financial power to the political power.”

But fellow Judge and Supreme Court Chief Justice Ricardo Lorenzetti had another opinion, arguing that ”the debt has to be paid”, but “with humans rights as limits”.

“The (Argentine Supreme) Court has expressed its opinion on the external debt, one very different from that of (US Federal) judge Thomas Griesa, in the Galli probe” Lorenzetti said in reference to a 2005 case where it backed the Argentine government’s restructuring strategy.

“We say that the debt has to be paid but not at the expense of the people’s sacrifice”.

In 2005, the Court backed the 'pesification' and the Nestor Kirchner government’s decision to default in order to open the debt restructuring process by rejecting an appeal from two dollar-denominated bondholders –Hugo Galli and Silvia Attardi- who demanded to be paid in dollars.

“Beyond financial issues, there is the people who suffer the consequences of execution, of crisis. The debt has to be paid, but with human rights as limits,” Lorenzetti stated.
 

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  • Troy Tempest

    Zaffaroni dismisses Griesa as a provincial judge, and blames the US Supteme Court - they didn't even hear the case.

    Judge Lorenzetti, does not dispute that Griesa is a Federal Judge, and agrees to pay as long as there is no impact on “human rights” in Argentina.

    They can't even get their stories straight, but they both want to dictate terms.

    Really, according to Contract Law, the debt must be paid - it is already written down to 30% of what it should be.
    It is up to Argentina whether they affect basic human rights to raise the money.

    Perhaps if they were to hold corrupt politicians and government administrators accountable for the money they stole, and demanded restitution from them , the ordinary people would be less affected.

    Oops, don't have the will or the way to do thst - that's your fault, Argentina.

    Aug 11th, 2014 - 02:13 am 0
  • La Patria

    More like a clash between reality and la-la land

    Aug 11th, 2014 - 02:13 am 0
  • BOTINHO

    “ Zaffaroni who is an expert in human rights law, and is considered the Judge at the Argentine Supreme Court closest to the administration of President Cristina Fernandez. ”

    CFK: “ Axel, we're in trouble. Can't we come up with something better to maintain the stall on our default, the one that we say doesn't exist ? ”

    AXEL: “ Hey Babe, I'm still having difficulty with my neckties. What about one of the Jurists in our pocket ? ”

    CFK: “ Great ! Who do you suggest ? ”

    AXEL: “ Well, I don't know who they actually are by name. ”

    CFK: “ Hell, where is the list of our judges in our pay. ” throwing papers off the desk. 4 hours later:

    CFK: “ Lets see.... Hmmm... Hey, how about Zaffaroni ? ”

    AXEL: “Thanks, I was getting hungry. I thought you'd never ask. ”

    CFK: “ No idiot, Eugenio Zaffaroni on our Supreme Court. We pay him ”

    AXEL: “ Uh, He is ? I mean, Oh He IS ! Well then , OK by me. I approve.
    Can we order something to eat now ? ”

    Aug 11th, 2014 - 03:49 am 0
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