Argentine President Cristina Fernández praised on Tuesday the United Nations General Assembly approval of a project that proposes legal framework to regulate restructuring of foreign sovereign debt, saying “Argentina has set an international leading case” with the initiative.
The project was suggested by the Argentine government and presented before the assembly by the Group of 77 and China. The suggestion to decide on the matter was approved and concrete measures will be treated during the UN’s next assembly.
“We have to feel proud. No country should ever feel the pressure of a few billionaires [referring to holdout creditors and their ongoing dispute with Argentina over the country’s debt],” CFK said during a televised broadcast from Government House.
Cristina Fernandez thanked “every country that favored the project” and urged the ones who did not vote for the initiative to “realize we need a more just, fair world. The World needs fewer vultures and more doves.”
The project was approved with 124 votes in favor, 41 abstentions and 11 negative votes.
“A World where two or three billionaires can put pressure on the justice system to try and collect usurious gains is not sustainable,” the Argentine president added.
Cristina Fernandez then referred to the approval of the Sovereignty Payment bill, which was passed by the Senate last week and will be voted tomorrow in the Lower House. The bill opens the way to change the payment location of bond holders.
“The opposition forces must understand the context in which we are. When I was opposition, I understood my responsibility as opposition. They need to reflect on today’s UN vote and think before voting tomorrow,” she said.
Nevertheless the Argentine government has the votes to make the bill into law, as 129 votes are needed to pass it through the Lower House and the Kirchnerite forces count with 132 between their own caucus, allies and some opposition representatives.
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In other words; At least 124 governments dont believe in fiscal responsability.Sep 10th, 2014 - 06:43 am 0
Dont like the Hedge funds?? Simple, dont get indebted in the first place and then dont default on your bonds and you will avoid them.
A century ago Argentina govt expenditure was only 7% of GDP and the 4th largest economy in the world but there must be no correlation what so ever, silly me....Now its 46% (officialy). More than half a century of fiscal deficit one would assume they would have known by now.
but hang on, wasnt this already going through and CFK has jumped on it to claim as her own.Sep 10th, 2014 - 06:55 am 0
Surely it is not retrospective so, she still has to sort out her own issues
@1Sep 10th, 2014 - 07:01 am 0
Today, Argentina's dollar debt with private creditors amounts to only 9.5 percent of GDP. It is the lowest in the whole world.
Today, the dollar debt with private creditors amounts to only 9.5 percent of GDP, against 95.3 per cent in 2002. Other countries in the region, such as Brazil, with gross debt / GDP ratio of 67.2 percent, and more Europe-Greece 179.5, 130.6 Italy, Portugal 122.3, 93.6 Britain, France 92.7, 91.8 and Germany 80.4 Spain - and the United States, with 108.1, are way up from Argentina, in the same record of the IMF in 2013 to 44 percent figure.
Argentina clearly has the capacity to repay the debt to the holdouts and end this Default after more than a decade! The outstanding debt is only approximately 12 Billion. (incl. accrued interest) It is not much for the 3. largest economy in South America.