Thursday, July 3, 2014

OAS supports Argentina position against hedge funds

The Organisation of American States (OAS) voted today to support Argentina’s position against holdout investors, as well as expressing concern over what the entity called "the behaviour of speculative agents that affect global financial stability."

According to the document signed, OAS backed up Argentina in order to let the South American country “fulfil its obligations, pay its debt and honor its financial commitments through a just and equal agreement with the totality of bondholders.”

Canada and the United States abstained from voting and were criticised by Foreign Minister Héctor Timerman.

“I appreciate the solidarity and commitment from Latin American and Caribbean countries. I do not quite understand the US’s position,” he said during a press conference after the meeting.

“I truly lament that two countries didn’t sign this well balanced document. The only thing it asks for is negotiations to be just and to allow us to pay.”

“For once we discuss a serious matter in OAS that could leave Argentina in a complicated situation and the US does not accompany the region’s will and consensus,” Timerman concluded, while saying this does not mean the relationship between these countries and Argentina is affected.

Meanwhile, Economy Minister Axel Kicillof praised OAS's support and highlighted this case impacts "the world financial architecture."

'Argentina will find a solution'

Roberta Jacobson, US assistant secretary of State for Western Hemisphere affairs, said it was in Argentina's interest to normalize relations with all creditors and in the interests of the country and the international community that Argentina fully participate in the international financial system.

"Both sides of this dispute have said at different times they would be willing to negotiate, which we believe offers the parties the best path to a resolution," she said.

"We are hopeful that Argentina will find a solution to this matter that resolves its issues with the bondholders and allows it to return to inclusive growth.