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ATFA Co-chair Issues Update: Argentina's 2001 Debt Default and 2005 Restructuring Cost U.S. Lenders, Investors and Taxpayers $20.3 Billion
Press Release
September 08, 2008

Says Argentina's Paris Club Repayment Plan is 'not nearly enough'

Contact: media@atfa.org
1-888-662-2382

Washington, D.C. American Task Force Argentina today released a new estimate of the total costs of the Argentine 2001 debt default and 2005 restructuring, prepared by Co-Chairman Dr. Robert Shapiro. The new study updates a previous ATFA estimate, also prepared by Dr. Shapiro, to take account of costs incurred between the January 2005 restructuring and the end of 2007. The new analysis finds that from December 2001 to December 2007, the default and restructuring have cost U.S. lenders, investors and taxpayers $20.3 billion. The costs to lenders, investors and taxpayers worldwide total $155 billion.

ATFA Co-chair Dr. Robert Shapiro, former Under Secretary of Commerce in the Clinton administration, issued the update to his 2007 study, "Discredited: The Impact of Argentina's Sovereign Debt Default and Debt Restructuring on US Taxpayers and Investors." The update on the costs to bondholders, taxpayers, and investors comes at a time of growing concerns in Buenos Aries, the United States and around the world about the current Argentine government's ability to manage the country's economy and economic policies effectively. With fast-rising inflation in Argentina, a worsening deterioration in investor confidence, and its access to international capital markets cut off by its unprecedented repudiation of tens of billions of dollars of its sovereign debt, the need for Argentina to quickly resolve its debts is imperative.

"Argentina's recent decision to finally honor and repay its Paris Club debts should be a sound first step in any effort by Argentina to return to the community of nations that respects its international obligations and contracts," stated Dr. Shapiro. "First, however, it must recognize that it owes the agreed-upon interest on its long-unpaid debts to other governments, which its current offer does not include. But even that won't be nearly enough. Now, the Kirchners also must use this occasion to resolve the billions of dollars in long-outstanding debts owed to private lenders around the world. Only then can Argentina regain its access to international capital markets and the broad international community."

To view the study, click here http://atfa.org/files/Updated_Shapiro_Argentine_Default_and_Restructuring_Costs.pdf

Made up of an alliance of organizations, ATFA's leadership includes its two co-chairs, the Honorable Robert J. Shapiro, former Under Secretary of Commerce for Economic Affairs in the Clinton Administration, and Ambassador Nancy Soderberg, Ambassador at the U.S. Mission to the United Nations in New York from 1997 to 2001. The Executive Director is Mr. Robert Raben, former Assistant Attorney General during the Clinton administration.

For additional information, please visit our new website at www.atfa.org, or contact media@atfa.org, or +1-888-662-2382.

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