Argentina Files Legal Action against the US over Debt
Argentina has taken the long-running dispute over its debt default to the international court of justice (ICJ) in The Hague, asking it to take action against the US over an alleged breach of its sovereignty as it defaulted on its debt.
The country’s default came at the end of July after it lost a prolonged legal battle with US hedge funds, dubbed ‘vulture funds’ by president Cristina Fernández de Kirchner’s administration that rejected the terms of debt restructurings in 2005 and 2010.
“The Argentine Republic filed with the Registry of the ICJ a document, against the United States of America, regarding a dispute concerning judicial decisions of the United States relating to the restructuring of the Argentine sovereign debt,” the court said in a statement.
The ICJ, the United Nations’ highest court for disputes between nations, said Argentina’s request had been “transmitted to the US government.” However, no action will be taken in the proceedings unless and until Washington accepts the court’s jurisdiction. While the US has done so in the past, it was not immediately clear that it would be the case this time around.
Argentina’s appeal to the ICJ claimed that the US had “committed violations of Argentine sovereignty and immunities and other related violations as a result of judicial decisions adopted by US tribunals concerning the restructuring of the Argentine public debt.”
“We issued a demand against the US at the world court because of the actions of its judicial branch,” said Kirchner. “The court is the tribunal where countries go to when they have a dispute. It’s the way a democratic society has to resolve its conflicts.”