Tuesday, 25 March 2014

ATFA Denounces Brazil, Mexico and France For Endorsing Argentina's Unlawful Behavior

Today Brazil, Mexico and France filed amicus briefs supporting Argentina in the U.S. Supreme Court. It has been widely reported that these briefs were procured by Argentina in exchange for substantial trade and bilateral benefits. In response to this news, Nancy Soderberg, co-chair of American Task Force Argentina, released the following statement:

"Amicus briefs in the U.S. Supreme Court are not bargaining chips to be used in bilateral negotiations."
"For over a decade, Argentina has consistently violated all global principles for sovereign debt restructuring.  Argentina's repudiation of its court judgments and its refusal to negotiate with creditors harms all sovereigns that legitimately seek to raise capital." 

"The Court of Appeals made clear that its ruling against Argentina was limited solely to Argentina's uniquely deplorable treatment of its creditors. The global financial community will not look favorably on Mexico, Brazil and France for endorsing Argentina's reprehensible treatment of its debt holders.
"Argentina's creditors have made it clear that they are willing to negotiate a fair resolution. It is time for Argentina to do the same."

Several recent news articles suggest that Argentina traded favors in exchange for legal support.   According to news reports in Brazil, Argentina offered to relax long-imposed trade restrictions on Brazilian exports in exchange for Brazil's legal support in U.S. courts. Brazilian officials are seeking investigations of the quid pro quo.

News articles in France and Argentina have also indicated that France's amicus brief was the subject of intensive face-to-face bilateral talks between French President Hollande and Argentine President Kirchner last week. Immediately following the meeting, which included discussions about the Paris Club debts owed to France and energy-related trade between the two countries, President Kirchner announced that France would support Argentina with an amicus brief in the U.S. Supreme Court.

The upcoming decision by the Supreme Court is Argentina's last chance to appeal the unanimous lower court decisions against it in NML et al. v. Republic of Argentina. All rulings to date have reinforced the decision by the lower courts requiring Argentina to abide by the terms of its contract. 
To read previous ATFA statements on the legal case, visit:
About the American Task Force Argentina
The American Task Force Argentina (ATFA) is an alliance of organizations united for a just and fair reconciliation of the Argentine government's 2001 debt default and subsequent restructuring. Our members work with lawmakers, the media, and other interested parties to encourage the United States government to vigorously pursue a negotiated settlement with the Argentine government in the interests of American stakeholders. 

SOURCE American Task Force Argentina

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