Argentina to argue debt repayments immune to U.S. law

BUENOS AIRES Fri Nov 16, 2012 9:46am EST

BUENOS AIRES Nov 16 (Reuters) - Argentina's government will tell a U.S. court on Friday that sovereign debt repayments are "immune" to U.S. law because they are made outside the United States, the state news agency reported on Friday.

The Telam report added that Bank of New York Mellon, the South American country's payment agent, would also contest a court decision that found Argentina had discriminated against so-called holdout creditors who have refused to participate in two swaps of defaulted debt.

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ratkartz wrote:
Argentina seems to have forgotten again that it consented to the application of US law in the issuance and any subsequent disputes surrounding the emission of these financial instruments, just as it agreed to surrender and renounce any claims to sovereign immunity to most of its national assets such as naval ships as an enticement to selling otherwise insanely risky bonds. Now, seeing the consequences of its earlier agreements, Argentina is characteristically trying to weasel its way out of its obligations, raising smoke-screens and endless quasi-legal noises as it circles the drain of another default. Foreign investment in Argentina has essentially disappeared, since the who loans money or otherwise does business with Argentina is incorrigibly foolish. Perhaps the full and immediate force of US and other international sanctions might bring some sense to the errant ways of its Peronist leaders.

Nov 16, 2012 10:56am EST  --  Report as abuse
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