Argentina expressed satisfaction with the Brussels Declaration at the end of the two-day European Union/Celac summit because it included strong backing to the country's efforts to change international rules regulating restructuring of sovereign debt and also there was a mention to territorial integrity, a tangent statement referred to the ongoing dispute over Falkland Islands sovereignty.
Argentina's delegation was satisfied with the final statement because it included territorial integrity and also, the restructuring of sovereign debt” said Hector Timerman adding it marked the first time that the EU has signed off on this type of language”.
The vote of confidence for a new set of rules regulating the restructuring of sovereign bonds, to prevent long drawn-out legal battles as the one currently being fought in New York between Argentina and holdouts, came at the end of a second summit of the Community of Latin American and Caribbean States (CELAC) and the European Union, representing 61 countries, in Brussels.
As is customary, the joint EU-Celac summit featured a final declaration that reviewed guiding principles and statements of political intent, the “Brussels Declaration” which is standard to international summits.
However the Argentine delegation was pleased with a paragraph that read that in “order to strengthen the orderliness and predictability of the sovereign debt restructuring process, we welcome the international work on strengthened collective action and pari passu clauses.”
US District Judge Thomas Griesa’s interpretation of the pari passu clause written into Argentine bonds defaulted in 2001 has been that holdout creditors be treated equally to restructured bondholders who had accepted steep discounts on the face value of their bonds was central to the rulings that went against Argentina and the declaration made reference to that element.
In effect the declaration welcomed the “international work on strengthened collective action and pari passu clauses. We call for their inclusion in international sovereign bonds and encourage the international community and private sector to actively promote their use. We take note of ongoing international discussions in relevant forums to build consensus on the sovereign debt restructuring process”.
Timerman also underscored that the Brussels Declaration addressed the matter of “territorial integrity,” saying that “territorial integrity is fundamental because it includes the sovereignty conflict with the United Kingdom” over the Falklands.
“That territorial sovereignty be discussed, Argentina considers that a very important advance” said the foreign minister.
A passage in the declaration urges states “to respect their territorial integrity and political independence, to refrain in our international relations from the threat or use of force in any manner inconsistent with the purposes and principles of the United Nations, to uphold the resolution of disputes by peaceful means and in conformity with the principles of justice and international law.”
Timerman again took time to criticize PM David Cameron following on the exchange on the first day of the summit regarding the Falklands sovereignty dispute, when in reply to the minister's Malvinas' claim, the British head of government called on Argentina to respect the Falklands' referendum results and stop 'threatening' the Islanders, letting them exercise their right to self determination and to develop their resources.
“The problem that Cameron has is that he doesn’t read the UN documents” concerning the Islands said Timerman.