OAS Calls Extraordinary Session to Consider Argentina Crisis

At the request of the Argentine government, the Organization of American States has called a special meeting of its Permanent Council for Monday at 10 a.m., June 30 at its headquarters in Washington, D.C., where the ambassadors of the member nations (which include the United States) will discuss the Argentine crisis, and in turn convoke an extraordinary session of Foreign Ministers for Thursday July 3 at 3 p.m. That meeting, according to an official OAS statement, is called “for the purpose of analyzing the topic ‘restructuring the sovereign debt: the case of Argentina and its systemic consequences’,” and will hear from Argentine Foreign Minister Hector Timerman and Finance Minister Axel Kicillof.

With all of Ibero-America in an uproar over the implications of the vulture fund assault on Argentina, yet another international body has come to Argentina’s defense. The United Nations Economic Commission on Latin America and the Caribbean (ECLAC)—or CEPAL as it is known in Ibero-America—issued a statement June 25 backing Argentina in its battle with the vulture funds, urging the creation of an “international mechanism” to resolve conflicts related to “sovereign defaults.”

ECLAC’s Executive Director Alicia Barcena warned that the global financial crisis and its effects, and the crisis of the Eurozone, “have again thrown into relief many of the profound inconsistencies and inequalities, related to both the organization of the international monetary system as well as the disproportionate power acquired by the world of finance over that of production and labor.”

ECLAC states that the recent U.S. Supreme Court ruling against Argentina “not only makes it difficult, perhaps impossible, for Argentina to continue servicing its restructured debt, but also threatens the stability of the international financial system, to the degree that it can prevent other processes of sovereign debt restructuring in the future.” Argentina would never have been able to make economic progress without the restructuring of its debt, ECLAC says.

Thus it is a “test case for the international community, as many other governments and international agencies have indicated, making clear the legal vacuum which should give way to a reform in international laws to protect the common good from the greed of minorities seeking extraordinary profits.”

This entry was posted in Bail-in Policy, Glass Steagall and tagged , , , , , , , , , , , , , , . Bookmark the permalink.

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