Argentina: US courts' failure shows need for international debt restructure mechanism

The Financial Times today (13 April) published this letter from PRIME’s Ann Pettifor and Jeremy Smith on the unjust role played by the US courts in the Argentina pari passu saga, notably the extra-territorial financial boycott of that country, and on the ever-more pressing need for a “supranational debt restructuring mechanism” to replace the failed private law system. 

We await news of whether the US appeals court will uphold the lifting of Judge Griesa’s injunction, thereby enabling the government of President Macri to borrow billions of dollars internationally (mainly in the US) to pay billions of dollars ransom amounting to some 1500% interest to the US hold-out hedge funds (registered in Caribbean tax havens).  A mad system indeed for resolving sovereign debt issues, but what a mouth-watering one for US vulture hedge funds!  And yet the G7 and IMF close their eyes and say there’s no need for fundamental change…

For lots more from PRIME on Argentina's debt, the US courts and the vulture funds, click here for the category "Argentina's debt" .