Washington and the Argentine Default

Argentina wants to pay bondholders who agreed to a restructuring settlement and withhold full payment to a few holdouts, but a US judge ruled that all or none must be paid. “Argentina has now taken the matter to the International Court of Justice, complaining that the decision of the U.S. judiciary is arbitrary, abusive, and beyond its jurisdiction besides ignoring the sovereign immunity of Argentina and hindering the sovereign debt restructuring process,” writes R. Viswanathan for Gateway House. The United States may not recognize the international court’s jurisdiction. Argentinians are upset that a few bondholders refuse to give the country a fresh start on its debt and suggest that some of Argentina’s chronic problems may stem from US support for the country’s military dictatorship from 1976 to 1983. The writer urges US Congress to follow the lead of Belgium and the United Kingdom, enacting legislation that reduces predatory lending and seizures that could disrupt the global financial system. – YaleGlobal