News

19 June 2014 – UNI Global Union warns that the decision of the United States Supreme Court to back vulture funds demanding a $1.3bn payback from Argentina is dangerous for the global economy and could tip us into a new and damaging round of global financial instability.

The IMF and FSB should not allow these vulture funds to act with impunity. These funds inhabit the shadow financial world where broader economic cohesion and prosperity is pushed aside in the interests of the 1%.

UNI Americas Regional Secretary Adriana Rosenzvaig said, “The IMF has come out and said it’s concerned by the Supreme Court decision not only for Argentina but for other countries dealing with sovereign debt. We say that is not enough – we need as fast as possible response from the IMF to this affront. Argentina has followed the IMF’s advice in restructuring its debt over more than a decade, now it’s been thrown to the bond vultures.” 

UNI Global Union General Secretary, Philip Jennings said, “Once again we see the exercise of financial power in the interests of a rich minority whose aim is to extract not create economic value. It is important that unions, NGOs and people respond with a rejection of this legal maneuver which promises to hammer the Argentinian people and send new ripples of financial uncertainty around the world. This is a hold up by the holdouts who are demanding their pound of flesh.”

The US Supreme Court has refused to hear Argentina's appeal in the case against it brought by two vulture funds, NML Capital (Elliot Management) and Aurelius Capital, opening it up to claims of $1.3bln.

If Argentina does pay the vulture funds in the way which is demanded by them, this would open it up to legal claims of around $15 billion owed to other holdout creditors. It would also mean it could be legally challenged by the 93% of bondholders who did restructure the debt. 

The next payments are due June 30.