1 / 5

Argentine Sovereign Debt and US Courts

Argentine Sovereign Debt and US Courts. Thomas Vari. Overview. 2002 – Argentina defaults on $100 Billion in sovereign debt 2005 & 2010 – 92% of bondholders accept restructuring for between 25 and 29 cents on the dollar

kyle-lara
Download Presentation

Argentine Sovereign Debt and US Courts

An Image/Link below is provided (as is) to download presentation Download Policy: Content on the Website is provided to you AS IS for your information and personal use and may not be sold / licensed / shared on other websites without getting consent from its author. Content is provided to you AS IS for your information and personal use only. Download presentation by click this link. While downloading, if for some reason you are not able to download a presentation, the publisher may have deleted the file from their server. During download, if you can't get a presentation, the file might be deleted by the publisher.

E N D

Presentation Transcript

  1. Argentine Sovereign Debt and US Courts Thomas Vari

  2. Overview • 2002 – Argentina defaults on $100 Billion in sovereign debt • 2005 & 2010 – 92% of bondholders accept restructuring for between 25 and 29 cents on the dollar • 2012 – US district judge rules remaining 8% of holdout bondholders must be paid in full • 2013 – Argentina’s appeal against ruling not accepted; Argentina and holdouts at impasse

  3. Issues • US court does not face mechanism to force payment by Argentina • Backlash from bondholders who accepted restructuring • Question of how far the jurisdiction of US courts goes when ruling on the affairs of sovereign nations • No multilateral system exists to force payment.

  4. Policy Proposal • To address how Argentina and its bondholders, both holdout and restructured, can reach a middle ground resulting in payment of bonds • To clarify the power of US courts with regards to sovereign nations • To examine possible multilateral solutions to avoid future recurrences of debt standoffs • To examine the impact of the court’s ruling on international trade and how this impact may be mitigated

  5. Sources • http://www.reuters.com/article/2013/02/28/us-argentina-debt-appeal-idUSBRE91Q1CC20130228 • http://www.nytimes.com/2013/03/02/world/americas/argentina-us-court-orders-debt-repayment-plan.html?_r=0 • http://www.economist.com/blogs/americasview/2013/04/argentinas-debt-default • http://ehis.ebscohost.com.mutex.gmu.edu/ehost/detail?vid=4&sid=9d304a28-daec-4adc-91e3-a0000e963987%40sessionmgr13&hid=2&bdata=JnNpdGU9ZWhvc3QtbGl2ZSZzY29wZT1zaXRl#db=bth&AN=84394614 • http://ehis.ebscohost.com.mutex.gmu.edu/ehost/detail?vid=4&sid=9d304a28-daec-4adc-91e3-a0000e963987%40sessionmgr13&hid=2&bdata=JnNpdGU9ZWhvc3QtbGl2ZSZzY29wZT1zaXRl#db=bth&AN=44131722 • http://www.ft.com/cms/s/0/6ccc360e-99f0-11e2-83ca-00144feabdc0.html#axzz2Qg1NAFYg • http://online.wsj.com/article/SB10001424127887323466204578384421042409206.html

More Related