News Center

The government negotiates paying adverse sentences
Clarin
January 25, 2012

By Ana Baron

The Argentine government began conversations with the two U.S. companies, Azurix and Blue Ridge, which asked that Argentina be expelled from the Generalized System of Preferences (GSP), arguing that our country refuses to pay sentences in their favor at the ICSID, the arbitration tribunal of the World Bank.

Two sources confirmed to Clarin that representatives of Azurix and Blue Ridge were received at the Economy Ministry last week. The goal is to avoid the Obama government imposing new sanctions against Argentina. The Treasury is still voting against credits for Argentina in the IADB because, among other things, it hasn't paid those sentences.

"We don't want this to escalate even more and end up with another action by the American government. We're open to sitting down and talking to find a solution," said Azurix president Rodrigo Castillo to this newspaper one month ago.

At the Economy Ministry there is also a readiness for a deal. They are talking of a "creative solution". But, it would seem, it still hasn't gotten the okay from Cristina, who is returning to work this week. The two companies argued that according to the rules of the GSP, a country that doesn't pay its debt cannot access its benefits.

The government affirms that it wants to pay the sentences but that according to Article 54 of the ICSID convention, the two companies have to go through Argentine courts to collect. The companies cite Article 53 to say that this isn't necessary. According to sources consulted, there are two options. The government and the companies could reach an agreement outside of what ICSID has established. The other possibility is that the government ensure for the companies that the process in Argentina's courts will only be a formality that will not put payment in jeopardy.

U.S. Government
Takes Action

Click here to view letters by the Administration and Members of Congress on Argentina's debt and economic policies.

The Debt and Europe

Click Here To Read More

ATFA Member Spotlight

Resolution on Argentina's Generalized System of Preferences Status (GSP)

Click here to view other ATFA member activity

Join Us
Show your support for ATFA and our work regarding debt default by joining our growing list of supporters.

Tell Your Friends
Do you have friends or colleagues who would be interested in supporting ATFA? Send them an invitation to this site by clicking here.