July 24, 2014
Vulture dispute: Gov't celebrates ‘categorical, broad’ international support for Argentina
Cabinet Chief Jorge Capitanich praised the “clear, categorical and broad” support for Argentina’s stance in its dispute with vulture funds from 133 countries from the UN system and specialized international media. “Argentina has reason on its side,” he stated.
“We have seen [support] from countries that are near, [members of] Mercosur and Unasur, but also from 133 countries from the international community,” Capitanich said in his daily press briefing at Government House. He also mentioned articles published in specialized magazines and newspapers that he said describe US rulings on Argentina’s debt as “extortive”.
Asked by reporters, the Kirchnerite official denied having had any contact with US President Barack Obama regarding this matter but he stressed that the rulings that favoured the holdout hedge funds “have global and systemic significance”. Capitanich said “no government can exclude itself from a debate with global implications”.
“Since there is no global mechanism for debt restructuring, it is essential to define on what is the porcentage needed for an agreement with creditors,” he said and reiterated that the houldout hedge funds are only 1% of the country’s creditors, after the government reached an agreement with 92.4% of them. “They are a tiny minority imposing on a majority through a NY Judge’s ruling,” Capitanich stressed.
PARIS CLUB, FOREIGN INVESTMENTS
Asked about the effect of the adverse US rulings in the previous deal with Paris Club creditors and foreign investment, the Cabinet Chief rejected any negative impact.
Capitanich confirmed payment to Paris Club creditors will be made in July, as agreed and said that foreign investments will continue as planned.