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US Rejects UN Court Jurisdiction on Argentinian Debt - Reports

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The United States refused to recognize the UN International Court of Justice jurisdiction regarding US court decisions on the Argentinian debt, Argentina's Clarin newspaper wrote citing a statement by the US Department of State.

BUENOS AIRES, August 9 (RIA Novosti) - The United States refused to recognize the UN International Court of Justice jurisdiction regarding US court decisions on the Argentinian debt, Argentina's Clarin newspaper wrote citing a statement by the US Department of State.

"We do not view the ICJ as an appropriate venue for addressing Argentina's debt issues, and we continue to urge Argentina to engage with its creditors to resolve remaining issues with bondholders," the paper cited the US State Department.

Argentina filed a case at the International Court of Justice in The Hague on Thursday against the US decisions concerning its debt and asked Washington to accept the jurisdiction. Without the US approval, the court cannot start the judicial procedure, according to the existing norms.

Argentina restructured 93 percent of its debt but creditors holding the other 7 percent of the bonds did not accept Argentina’s proposal and filed a lawsuit, demanding a full payment. A New York court earlier ruled that Argentina had to pay $1.33 billion to its 2001 bondholders who did not agree with the restructuring deal.

The court blocked the transfer of the sum of $590 million that Buenos Aires forwarded in order to cover its restructured debt, forcing the country to start negotiations with creditors who refused the restructuring deal.

The court said Argentina had to start talks with the lenders that had not approved the debt restructuring and negotiated to postpone the payment with those, who did agree.

As a result, with the lenders unable to receive the payment, international regulators and rating agencies announced the country's 'selective' default.

Over the last 40 years Argentina went through three major debt crises, in 1982, 1988 and 2001, with the default declared by the country’s government in 2001 becoming the largest in history.

Tags:
U.S. Department of State, default, debt crisis, debt, economy, Argentina
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