Argentina/international financial system
Argentina has asked the Supreme Court of the United States to re-examine the decision of 26 October 2012 by an American appeal court urging her to pay her debts in full to certain so-called “litigious” creditors. Under the terms of the decision, Argentina risks being unable to pay those creditors who have striven to make her debt sustainable again unless, prior to this, she pays her litigious creditors, who have refused to make such efforts in the past.
Pierre Moscovici, Minister of the Economy and Finance, says France will act as amicus curiae to the Supreme Court on the matter. The aim of this French initiative is to alert the Supreme Court to its decision’s potential implications for the proper functioning of the international financial system. It could affect the very principle of the orderly, negotiated restructuring of sovereign debt, carried out in particular in the framework of the Paris Club. The court’s decision could actually deter creditors of good faith from contributing to the resolution of any indebtedness crises and could thus have significant implications for many low-income developing countries.
The initiative is not linked to the specific case of Argentina. It is motivated by France’s commitment to preserving international financial stability and to her role within the Paris Club, of which she has held the Chair and Secretariat since its creation in 1956./.