Argentina’s economy is being held to ransom by a small handful of very wealthy speculators – so-called ‘vulture funds’.
A New York court has awarded two US vulture funds a $1.3 billion payout on debts bought up after Argentina’s debt crisis of 2001. What’s more, Argentina has been told it is ILLEGAL to pay its other debts unless it also pays the vultures.
With a $900 million payment due on 30 June (plus a 30 day grace period), Argentina is being forced towards a new debt default.
The vulture funds bought up billions of dollars worth of Argentina’s debt in the early 2000s when the country’s economy was on its knees and its people were suffering horrendous poverty. Defaulting on its debts was the only option. 93% of lenders agreed to reduce Argentina’s debt burden, and the country’s economy has recovered. But vulture funds have spent more than a decade demanding the full amount plus interest and penalties. The decade-long legal battle has been called the ‘debt trial of the century’.
We believe there is no ethical justification for Argentina making this payment. These ‘vulture funds’ never lent money to Argentina – they are profiteering from a country in debt crisis. What’s more, many of the debts originate from the time of Argentina’s brutal military dictatorship – many Argentinians argue they should not be repaid at all.
Support Argentina’s right to refuse to pay
Please sign the global statement of support for Argentina’s right to refuse to pay. It will be delivered to the Government of Argentina.