Argentina Alleges Extortion After Court Sides With 'Vulture Funds'
This week, the U.S. Supreme Court rejected an appeal from Argentina over its $1.5 billion debt in a ruling critics say validates predatory behavior by “vulture funds.” “Democracy Now!” looks at the case that is being called the “trial of the century” in how poor countries repay sovereign debt.
The program reports:
The case involves hedge funds that bought up Argentina’s debt at bargain rates after its financial crisis more than a decade ago. After Argentina defaulted on its debts, the vast majority of its creditors agreed to slash the value of their holdings. But NML Capital and other firms refused to accept the deal, instead seeking full repayment. Monday’s ruling leaves in place a lower court decision ordering Argentina to pay the companies. Argentine President Cristina Fernández de Kirchner has called the firms’ actions “extortion.”
The program talks to Eric LeCompte, executive director of Jubilee USA Network, “an alliance of more than 75 U.S. organizations, 250 faith communities and 50 Jubilee global partners” working to create “critical global financial reforms” and having won “more than $130 billion in debt relief for the world’s poorest countries.”
— Adapted from “Democracy Now!” by Alexander Reed Kelly.