MercoPress. South Atlantic News Agency
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Summit supports Argentina in its struggle with bond holders
Leaders reaffirm their solidarity and support for Argentina in a solution which does not compromise its development or the wellbeing of its people The two-day summit of Ibero American leaders meeting in Mexico, besides the traditional declaration, also put out a special statement in support of Argentina and its ongoing struggle with speculative funds.
Recognizing the right of every State to negotiate the restructuring of its sovereign debt, which must not be frustrated or obstructed by minority groups holders of non restructured sovereign bonds, state:
1) Demand that agreements reached between creditors and debtors in the framework of the restructuring of sovereign debt processes, be respected
2) Express their most absolute rejection to the attitude of those groups whose actions obstruct the achievement of definitive agreements between debtors and creditors , and put at risk international financial stability
3) Reaffirm their solidarity and support for Argentina in the search of a solution which does not compromise its development or the wellbeing of its people, in consonance with national development policies.
4) Express their willingness to continue working in multilateral mechanisms, involving all competent institutions on the restructuring of sovereign debt. More specifically they underline among other issues, the negotiations process opened following on Resolution 68/304 from the UN General Assembly.
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Read all commentsThis is all well and good as long as those nations voting to support the Argentine position understand tyhat they are also voting for higher borrowing costs for themselves.
Dec 10th, 2014 - 10:11 am 0Implementing such decisions is increasing the risk profile of sovereign debt and the result of that will be an increase in the cost of borrowing.
I think they should just use a FICO credit score like with individuals. Scores under xxx do not qualify for borrowing. I think that will leave a vast majority of SA out of borrowing. Safer for investors anyway.
Dec 10th, 2014 - 10:21 am 0@2
Dec 10th, 2014 - 10:44 am 0Sounds good, only borrow what you can afford to pay back, best if Argentina pays now as all this bleating is giving them a bad name. Who in their right mind would lend to country that is not only refusing to pay it's debts and then going on the International circuit drumming up support for not doing it. I thought restructuring was a negociation not a right.
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