MercoPress. South Atlantic News Agency

Uruguay Vice-president and Latam UN ambassadors claim US justice took sides

Astori said that the current situation is a disastrous precedent for countries wishing to comply with debt commitments

Latin American ambassadors to the United Nations (UN) and Uruguay's Vice-president Danilo Astori showed their support to Argentina in its dispute against holdout hedge funds. They agreed that the so-called 'vulture funds' are a risk to debtor nations and that they pose a threat to the region.

 Ambassadors to the UN Sacha Llorente Solis (Bolivia), Oscar Leon Gonzalez (Cuba), Xavier Lasso Mendoza (Ecuador) y Samuel Moncada (Venezuela) expressed their support for Argentina in a joint interview with local press.

“What is going on with the vulture funds is an example of the perverse way in which unregulated system encourage unlimited gains, with no control over sovereignty violations,” Llorente Solis said.

“[The Argentine case] shows how the world is organized, with speculative capital on top not only of the people’s right but even the States’ sovereignty,” she added.

Venezuelan Samuel Moncada in turn pointed out that “the entire US judicial system took sides with the speculators”.

Cuban Gonzalez added that the US Supreme Court “decided to turn this dispute into an universal issue and intend to put US laws over the rest of the people’s jurisdictions”. He stated that the rest of the world “will not accept a New York Judge as a global judge,” in direct reference to US Judge Thomas Griesa.

Uruguay's Vice president Danilo Astori also joined the group from Montevideo strongly condemning the US Judiciary and Supreme Court for not taking considering Argentina's case.

“I want to share publicly my total and absolute rejection and discrepancy with the Supreme Court position that supported a small group of creditors contrary to the criteria of an overwhelming majority”, said Astori, adding that “this is a disastrous precedent for those countries wishing to comply with their commitments with restructured debt”.

Astori went further and said Latin American countries should reject such rulings because of the consequences they could have, since the current situation could put Argentina in serious difficulties to comply with its commitments.

Last week Beijing was also involved when the spokesman of the Chinese Foreign Affairs Ministry Hong Lei called for a “suitable agreement” to be reached “as soon as possible,” praising the “measures” the Cristina Fernandez government has taken to restructure Argentina’s debt and “meet its payment commitments.”

Meanwhile in Buenos Aires US Chargé d’Affairs to Argentina Kevin Sullivan expressed optimism that Argentina’s long-term legal battle with holdout hedge funds would be resolved, predicting that both sides will “reach a solution” in negotiations, which are scheduled to begin next Monday. Sullivan also highlighted the role of Daniel Pollack, the “special master” named to lead the negotiations.

“We hope Argentina achieves a definitive solution with its creditors that didn’t participate in the debt swap. It’s a challenge and isn’t easy but I’m positive that both sides will reach a solution,” Sullivan said during the Buenos Aires embassy’s July 4 celebrations. “There’s willingness to negotiate.”

Sullivan says that the US knows Argentina is “working to insert itself into international markets,” adding that “Pollack’s appointment opens a path to solutions and that’s the important thing.”