Lawmaker Urges U.S. State Department to Abstain from Participating in Argentina's Debt-Pay-Down "Victory" Celebration

Press Release

July 31, 2012

Rep. Michal Grimm (NY-13) Calls-out Argentina for misleading the international community

WASHINGTON American Task Force Argentina (ATFA) today commends Rep. Michael Grimm (NY-13) for his leadership on opposing attempts by President Cristina Fern ndez de Kirchner to mislead the international community about her nation's "economic independence."

In a letter dated July 27, addressed to Secretary of State Hillary Rodham Clinton, Rep. Grimm requests that the U.S. abstain from offering diplomatic support to the Argentine government as it celebrates payment of its 2012 Boden Bonds on Friday, August 3. He argues that any such actions by the U.S. Government would "undermine" efforts to enforce the $3.5 billion in outstanding arbitral awards in favor of United States citizens.

"It has come to my attention that the Argentine government is preparing to celebrate a final $2.2 billion payment on its 2012 Boden bonds President Cristina Fernandez de Kirchner will declare victory for her nation's 'economic independence.' In fact, the Kirchner Administration is cynically promoting the Boden payments as a 'victory,' while continuing to defy U.S. courts, the World Bank (and its ICSID tribunal) and the Paris Club by refusing to meet its debt obligations on the world stage and to U.S. Citizens," wrote Rep. Grimm in reference to the government's intransigence.

Recent press reports from Argentina challenge the government's official characterization of Argentina's fiscal health and underscore the extent to which the Kirchner administration continues to mislead and distort the facts before the world community.

"While the government will celebrate the payment of the Boden 2012 this Friday as if it were the finale of the debt cycle, every inhabitant of Argentina still owes US$4,460; and the country has balances of US$20 billion that are not normalized," wrote La Nacion's Martin Kanenguiser on July 31, referencing the $11.2 billion in outstanding bond debt that remains in arears to private creditors worldwide.

In an interview with El Cronista TV, former Central Bank President Alfonso Prat-Gay also questioned the rosy economic picture. He said that the government is making many of the same decisions that were adopted by former Argentine President De la Rua in 2001 on the eve of the nation's historic sovereign default.

To view a copy of Rep. Grimm's letter, visit: http://atfa.org/files/Grimm_LetterTo_Sec._Clinton.pdf
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About the American Task Force Argentina
The American Task Force Argentina (ATFA) is an alliance of organizations united for a just and fair reconciliation of the Argentine government's 2001 debt default and subsequent restructuring. Our members work with lawmakers, the media, and other interested parties to encourage the United States government to vigorously pursue a negotiated settlement with the Argentine government in the interests of American stakeholders.