Argentina Reaches Agreement with Paris Club Preventing IMF Austerity

WASHINGTON - May 30 - Argentina reached agreement with the Paris Club, a 19-member block representing some of the world's wealthiest countries, to repay nearly $10 billion in debts. The agreement ended a dispute that dates back to Argentina's 2001 default and ensures that there will be no International Monetary Fund (IMF) promoted austerity programs. Further, Argentina has renewed access to capital markets and strengthened its position within the G20.
"Argentina negotiated an agreement that keeps the IMF out of Argentina," said Eric LeCompte, Executive Director of the religious anti-poverty organization Jubilee USA. "IMF austerity programs have wreaked havoc in both poor and wealthy countries."

According to Spain's El Pais, two-thirds of the debt is rooted in previous Argentine dictatorships and corrupt regimes.

"One of the principle problems with Paris Club negotiations is the unwillingness to assign fault to lenders that kept corrupt governments in power that abused their people. We are sending the wrong message to emerging democracies when they are forced to pay for the sins of their oppressors," shared LeCompte, who is also an expert to United Nations working groups on these issues.

Meanwhile, on May 27th the country filed its final arguments at the US Supreme Court in its dispute with hold-out creditors NML Capital and Aurelius Capital. These predatory hedge funds seek more than $1 billion in debt payments and refuse a deal that nearly 93% of Argentina's creditors accepted after its default. The high court is expected to decide in June whether or not to take the case. Because of the case's impacts on poor populations, global debt restructuring and poor country access to credit, Jubilee USA filed an amicus curiae brief to the Supreme Court. 

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Jubilee USA Network is an alliance of more than 80 religious denominations and faith communities, human rights, environmental, labor, and community groups working for the definitive cancellation of crushing debts to fight poverty and injustice in Asia, Africa, and Latin America.