The Argentine Embassy in the United States has launched a website to explain the conflict between Argentina and holdout investors commonly referred to as “vulture funds”. The website explains the origins of the conflict, its history, and provides documents and expert opinions on the subject. Its virtual library has until now over 200 documents and 100 independent sources.
The website is called “All about the Argentine Debt Case”, and is divided in several sections such as: why is the case important to the world; what is a 'vulture fund'; and what are the actions they take in different regions of the world to gain extraordinary benefits against local governments and people.
“The rulings by NY courts in the case of Argentina’s sovereign debt restructuring have forever changed sovereign debt markets, rendering future sovereign debt restructurings virtually impossible,” the site’s presentation reads.
The website explains the Argentine proposal and backs it up with numerous expert opinions such as the ones delivered by: Joseph Stiglitz (Nobel Prize winner in Economics); José Mujica (former President of Uruguay); Rafael Correa (President of Ecuador); Michelle Bachelet (President of Chile); the OEA; the UN and the governments of United States, Brazil, France and Mexico.
The conflict started in when Argentina defaulted in 2001. The country successfully restructured its debt with 92.4% of its bondholders in 2005 and 2010, but a small minority of vulture funds chose not to join the debt exchange.
These funds bought debt many years after the default and judicially harassed Argentina to obtain an exorbitant 1600% profit, according to the website.
The US judicial system upheld the litigant’s request. Circumventing the sovereign immunities all nations have in the US, the ruling blocked 92.4% of Argentina’s exchange bondholders from collecting their payments until the litigants’ claims are fulfilled.