By Carmen Reinhart (*) Argentina recently emerged from nearly 15 years of the most litigious sovereign default in modern times, if not ever. Now it has the opportunity to reenter the global financial system and build a more stable and prosperous future. It is a chance that the country must be careful not to squander.
Daniel A. Pollack, Special Master appointed to preside over settlement negotiations between the Republic of Argentina and its “Holdout” Bondholders, this morning (29 February) issued the following statement:
Addressing the UN General Assembly, President Cristina Fernandez accused the United States of 'protecting' a former Argentine intelligence agent, blasted the speculative or 'vulture funds', gave details of the Iran-US-Argentina dealings and to everybody's surprise did not mention a word about the Falkland Islands sovereignty claim.
The United Nations General Assembly has approved a resolution put forward by Argentina regarding sovereign debt restructuring, which seeks to limit the movement of speculative funds in influencing such actions.
A United Nations committee, after six months work, on Tuesday, unanimously adopted a historic report that establishes nine principles for restructuring sovereign debt, the committee's chair Sacha Llorenti of Bolivia told reporters.
Nobel Prize-winning economist Joseph Stiglitz has reiterated his support for a wider system of control on international sovereign debt restructuring, citing the examples of Argentina, Greece and Ukraine to back up his assertion that the area needs more supervision to protect those involved.
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.
The official communiqué of the G20 summit released at the end of the bloc’s meeting in Brisbane, Australia, included a paragraph on sovereign debt restructuring process, as requested by Argentina. Economy Minister Axel Kicillof and Foreign Minister Héctor Timerman celebrated it and described it as ‘historic’.
As Argentine President Cristina Fernandez readies for her annual trip to New York to speak at the United Nations General Assembly, US interim ambassador in Buenos Aires Kevin Sullivan ratified that Washington will not back the UN sovereign debt resolution sparked by Argentina’s legal battle with its holdout creditors.
Argentina will pay holders of its restructured sovereign debt, thanks to a bill passed by its Congress last week despite a US court ruling, the country's economy minister told a local radio show on Sunday.